GM Agrees to $14.5 Billion Revolving Credit Line
May 26 2016 - 5:40PM
Dow Jones News
By Josh Beckerman
General Motors Co. has agreed on a $14.5 billion revolving
credit facility and reaffirmed its so-called capital allocation
framework.
The new revolving credit line, along with the company's cash,
"will provide appropriate liquidity to enable consistent investment
in a downturn to generate strong results," the auto maker said on
Thursday.
The company said the new facility replaces an existing $12.5
billion revolver.
In March 2015, GM detailed a plan that called for it to maintain
an investment-grade balance sheet and a target cash balance of $20
billion. The company also said it planned to return all available
free cash flow to shareholders.
GM said 44 financial institutions participated in the credit
accord.
Shares of GM were unchanged after hours and closed Thursday down
1.1% to $31.29.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 26, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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