GM reduces loan refinancing target, may pay up for new debt
Source: Reuters
BUSINESS NEWS APRIL 3, 2020 / 7:52 PM / UPDATED 9 MINUTES AGO
NEW YORK (LPC) - General Motors Co (GM) will seek to extend maturities on US$6bn in revolving loans rather than refinance a US$16.5bn credit facility following discussions with its bank group during an unprecedented health crisis in the US.
The company originally went out to its JP Morgan and Citigroup-led bank group in early March requesting to push maturities on the US$16.5bn in revolving credit facilities as part of its regular-way liability management operations.
The transaction was meant to roll over maturities, but leave pricing unchanged, several sources familiar with the discussions said.
But GM’s decision to refinance came at a time when the company is facing a longer than expected shutdown of its plants and considerable revenue losses amid a crisis of extraordinary magnitude that has created a playing field much different from when it last underwent refinancing discussions in 2019.
Read more: https://www.reuters.com/article/us-gmloan-refinancing/gm-reduces-loan-refinancing-target-may-pay-up-for-new-debt-idUSKBN21L3EU?il=0
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