General Motors Secures $1.95 Billion Revolving Credit Line
General Motors Co. (GM) disclosed that it entered into a revolving credit agreement for $1.95 billion to be used for its financial unit when needed.
Citibank (C) and JPMorgan Chase Bank (JPM) are the underwriters of the 364-day credit agreement, the automaker said in a filing adding that the funds will be used for its unit General Motors Financial Co. Funds borrowed against the revolving credit agreement need be repaid no later than April 9, 2021, the company said.
Furthermore, the credit line is provided on condition that the Detroit-based automaker maintains at least $4 billion in global liquidity and at least $2 billion in U.S. liquidity. General Motors advanced 7.7% to close at $22.48 on Friday.
TipRanks data shows that Wall Street analysts are slightly divided about General Motors, giving the company a Moderate Buy consensus rating split into 9 Buys, 3 Holds and 1 Sell. The average price target of $33.92 per share implies the stock has 51% upside potential in the next 12 months. (See General Motors stock analysis on TipRanks).
In a separate statement, General Motors announced that it had started delivering the first batch of 54 ventilators to U.S. hospitals treating severely ill COVID-19 patients. The automaker said that on Friday the Franciscan Health Olympia Fields hospital in Olympia Fields, Illinois, and Chicago’s Weiss Memorial Hospitals were expected to receive shipments of 10 ventilators each via package delivery company UPS Inc.
In addition, another shipment of 34 ventilators were to be delivered by UPS to the U.S. Federal Emergency Management Agency at the Gary/Chicago International Airport on Saturday to be distributed at other locations.
General Motors has entered a cooperation with ventilator firm Ventec Life Systems to produce the equipment. The deliveries are part of a contract worth $489.4 million awarded to General Motors by the U.S. Department of Health and Human Services for 30,000 ventilators to be delivered by the end of August.
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