DETROIT, May 26, 2016 /PRNewswire/ -- General Motors
Co. today announced the execution of an unsecured $14.5 billion revolving credit facility
consisting of a $10.5 billion
five-year facility and a $4.0 billion
three-year facility. The facility amends and extends GM's
existing $12.5 billion revolving
credit facility.
"We believe this larger revolver, along with our $20 billion target cash, will provide appropriate
liquidity to enable consistent investment in a downturn to generate
strong results," said Chuck Stevens,
GM executive vice president and chief financial officer. "In
addition, we will also have the financial flexibility within the
revolver for potential opportunities that may emerge to advance our
strategic plan."
The company reaffirmed its capital allocation framework,
including targets for cash of $20
billion and available liquidity of $30 to $35 billion needed to withstand a severe
economic downturn. In addition, buybacks executed under the
company's common stock share repurchase program will continue to be
funded with available free-cash-flow.
A total of 44 financial institutions from 13 countries
participated in the broadly syndicated transaction, underscoring
the global scope of GM's operations.
General Motors Co. (NYSE:GM, TSX: GMM) and its partners
produce vehicles in 30 countries, and the company has leadership
positions in the world's largest and fastest-growing automotive
markets. GM, its subsidiaries and joint venture entities sell
vehicles under the Chevrolet, Cadillac, Baojun, Buick, GMC, Holden,
Jiefang, Opel, Vauxhall and Wuling brands. More information on the
company and its subsidiaries, including OnStar, a global leader in
vehicle safety, security and information services, can be found at
http://www.gm.com
Forward-Looking Statements
In this press release and related comments by management, and in
reports we subsequently file and have previously filed with the SEC
on Forms 10-K and 10-Q and file or furnish on Form 8-K, and in
related comments by our management, we use words like "anticipate,"
"appears," "approximately," "believe," "continue," "could,"
"designed," "effect," "estimate," "evaluate," "expect," "forecast,"
"goal," "initiative," "intend," "may," "objective," "outlook,"
"plan," "potential," "priorities," "project," "pursue," "seek,"
"will," "should," "target," "when," "would," or the negative of any
of those words or similar expressions to identify forward-looking
statements that represent our current judgment about possible
future events. In making these statements we rely on assumptions
and analyses based on our experience and perception of historical
trends, current conditions and expected future developments as well
as other factors we consider appropriate under the circumstances.
We believe these judgments are reasonable, but these statements are
not guarantees of any events or financial results, and our actual
results may differ materially due to a variety of important
factors, both positive and negative. These factors, which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K, include, among others: (1) our ability to maintain
profitability over the long-term, including our ability to fund and
introduce new and improved vehicle models that are able to attract
a sufficient number of consumers; (2) the success of our full-size
pick-up trucks and SUVs; (3) global automobile market sales volume,
which can be volatile; (4) the results of our joint ventures, which
we cannot operate solely for our benefit and over which we may have
limited control; (5) our ability to realize production efficiencies
and to achieve reductions in costs as we implement operating
effectiveness initiatives throughout our automotive operations; (6)
our ability to maintain quality control over our vehicles and avoid
material vehicle recalls and the cost and effect on our reputation
and products; (7) our ability to maintain adequate liquidity and
financing sources including as required to fund our new technology;
(8) our ability to realize successful vehicle applications of new
technology and our ability to deliver new products, services and
customer experiences in response to new participants in the
automotive industry; (9) volatility in the price of oil; (10) the
ability of our suppliers to deliver parts, systems and components
without disruption and at such times to allow us to meet production
schedules; (11) risks associated with our manufacturing facilities
around the world; (12) our ability to manage the distribution
channels for our products; (13) our ability to successfully
restructure our operations in various countries; (14) the continued
availability of wholesale and retail financing in markets in which
we operate to support the sale of our vehicles, which is dependent
on those entities' ability to obtain funding and their continued
willingness to provide financing; (15) changes in economic
conditions, commodity prices, housing prices, foreign currency
exchange rates or political stability in the markets in which we
operate; (16) significant changes in the competitive environment,
including the effect of competition and excess manufacturing
capacity in our markets, on our pricing policies or use of
incentives and the introduction of new and improved vehicle models
by our competitors; (17) significant changes in economic,
political, regulatory environment and market conditions in
China, including the effect of
competition from new market entrants, on our vehicle sales and
market position in China; (18)
changes in existing, or the adoption of new, laws, regulations,
policies or other activities of governments, agencies and similar
organizations, particularly laws, regulations and policies relating
to vehicle safety including recalls, and including such actions
that may affect the production, licensing, distribution or sale of
our products, the cost thereof or applicable tax rates; (19)
stricter or novel interpretations and consequent enforcement of
existing laws, regulations and policies; (20) costs and risks
associated with litigation and government investigations including
the potential imposition of damages, substantial fines, civil
lawsuits and criminal penalties, interruptions of business,
modification of business practices, equitable remedies and other
sanctions against us in connection with various legal proceedings
and investigations relating to our various recalls; (21) our
ability to comply with the terms of the DPA; (22) our ability to
manage risks related to security breaches and other disruptions to
our vehicles, information technology networks and systems; (23)
significant increases in our pension expense or projected pension
contributions resulting from changes in the value of plan assets,
the discount rate applied to value the pension liabilities or
mortality or other assumption changes; (24) our continued ability
to develop captive financing capability through GM Financial; and
(25) changes in accounting principles, or their application or
interpretation, and our ability to make estimates and the
assumptions underlying the estimates, which could have an effect on
earnings.
We caution readers not to place undue reliance on
forward-looking statements. We undertake no obligation to update
publicly or otherwise revise any forward-looking statements,
whether as a result of new information, future events or other
factors that affect the subject of these statements, except where
we are expressly required to do so by law.
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SOURCE General Motors