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GM in talks with banks on $5 billion credit line: source


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GM in talks with banks on $5 billion credit line: source

Reuters

DETROIT (Reuters) – General Motors Co (GM.UL) is in talks with banks to secure a $5 billion credit revolver as it prepares to file for an initial public offering of its stock this year, a source familiar with the plan said on Friday.

A new credit line should provide GM with an additional liquidity cushion in the event of a possible double-dip recession and also bankroll GM's expansion in global markets including China, the source told Reuters.

He asked not to be named because he was not authorized to discuss the confidential plans.

GM is also considering issuing new capital in the IPO to address a $27 billion shortfall in its pension funding and improve its balance sheet further, sources involved in the preparations have told Reuters previously.

GM spokeswoman Noreen Pratscher had no comment.

(Reporting by Philipp Halstrick in Frankfurt, writing by Soyoung Kim; Editing by Derek Caney)

link:

http://news.yahoo.com/s/nm/20100702/bs_nm/us_gm_credit

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