GM Seeks $10 Billion Line Of Credit

General Motors Co. is preparing to launch a new offering to double its line of credit to $10 billion, a person briefed on the matter told The Detroit News.

GM plans to refinance a $5 billion line of credit it secured in October 2010 that it has not tapped.

GM has no need for immediate cash. As of the end of June, GM had $32.6 billion in cash and marketable securities on hand.

The move may help GM secure investment-grade credit status from rating agencies. Ford Motor Co., a smaller company by sales volume, has a $9 billion revolving line of credit and is rated at investment grade by two major rating firms.

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HughJass - 9/24/2012 4:41:37 PM

-1 Boost

GM can join China and blow me.

280SE - 9/24/2012 4:56:09 PM

+2 Boost

Not sure why a move by GM to improve their funding sources would prompt that comment.

HughJass - 9/25/2012 10:52:54 AM

+1 Boost

Because the big pile of money they're sitting on is all tax dollars. If they had a plan, they wouldn't be concerned about reworking a line of credit they supposedly don't need.
They'll most likely use it to open more factories in China and close the ones here.

chewy - 9/25/2012 7:02:38 PM

+1 Boost

They shouldn't tap too many lines of credit, could be problematic managing all of them.