DETROIT, Sept. 19 /CNW/ -- General Motors (NYSE: GM) announced today that
it intends to draw down the remaining $3.5 billion of its $4.5 billion secured
revolving credit facility to maintain a high level of financial flexibility
for its ongoing restructuring during these uncertain times in the capital
markets. In addition, GM announced the completion of a $322 million debt to
"Accessing the funds available to us is a prudent liquidity measure.
Drawing on the revolver now improves our liquidity position at a time when the
capital markets have become more challenging," said GM Treasurer Walter Borst.
The revolver draw will bolster the company's liquidity position. The
proceeds from the draw would also be available to be used to retire $750
million of debt maturities coming due in October, and to pay Delphi
Corporation in excess of $1.2 billion as part of its reorganization efforts,
assuming court approval of the revised agreements between GM and Delphi that
were filed with the court on September 12. The $4.5 billion secured revolving
credit facility was put in place in July 2006 with a consortium of banks and
provides liquidity that GM can draw on from time to time to fund working
capital and other needs.
In July, GM announced a plan to bolster liquidity through internal
operating actions, asset sales and the capital markets
(http://media.gm.com/us/gm/en/). The internal operating elements of the plan
remain on track and the company continues to look to opportunistically access
the capital markets.
As part of its capital market activities, GM has completed a debt to
equity exchange which will improve GM's liquidity by reducing both its debt
and its interest costs. GM issued 28.3 million new shares of its common stock
in exchange for $322 million principal amount of its 1.5% Series D Senior
Convertible Debentures, which mature in June 2009.
For further information:
For further information: Renee Rashid-Merem, GM Communications,
+1-313-701-8560, firstname.lastname@example.org, or Julie M. Gibson, GM Financial
Communications, +1-313-213-3086, email@example.com; NOTE TO EDITOR: For
additional media information visit http://media.gm.com.