GM Agrees to $14.5 Billion Revolving Credit Facility

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 17:35 ET (21:35 GMT)

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