General Motors readies $10 billion liquidity credit

Mon Sep 24, 2012 10:08am EDT
 
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By Michelle Sierra

NEW YORK (Reuters) - General Motors Co (GM.N: Quote) is readying the launch of $10 billion in revolving credit facilities that will beef up liquidity and refinance existing debt, sources told Thomson Reuters LPC.

JP Morgan is leading the deal that will officially tap the market in the next two weeks.

Calls to General Motors were not returned by press time. A JP Morgan spokesperson did not return calls.

The facilities comprise a $5 billion, five-year revolver and a $5 billion, three-year revolver, sources said. However, the final amounts could change as the discussions are said to be ongoing.

The company is currently in active dialogue with top tier lenders. At the top level, the company is asking lenders for commitments of $600 million. A second tier is being asked for commitments of $350 million.

Individual commitments will be allocated across both the three-year and the five-year credit facilities.

If the company draws down on the facility, pricing is expected to be around 250bp over Libor.

The company is offering upfront fees between 30bp and 50bp, depending upon the size of a bank's commitment. The company is also offering a flat fee in addition to the upfront fee.   Continued...

 
A view of the General Motors headquarters at the Renaissance Center in Detroit, Michigan is seen in this file photograph taken August 25, 2009. REUTERS/Jeff Kowalsky/Files