GM to draw down $3.5B line of credit

The automaker cites 'uncertain times' for it decision to tap into its revolving credit line.


DETROIT (AP) -- General Motors Corp. said Friday it intends to draw down $3.5 billion of a $4.5 billion secured revolving credit facility for its restructuring in what it called "uncertain times in the capital markets."
General Motors (GM, Fortune 500) will be using the remainder of the credit facility. The company said it was making the move to have more liquidity while capital markets are under pressure.
The automaker was reacting after a week that brought the bankruptcy of Lehman Brothers Holdings Inc. (LEH, Fortune 500), the sale of Merrill Lynch & Co. (MER, Fortune 500) to Bank of America Corp. (BAC, Fortune 500) and a government bailout of insurer American International Group Inc. (AIG, Fortune 500)
General Motors also said in the news release it had completed a $322 million debt to equity exchange.
The company's shares rose $1.68, or 15%, to close at $13.08 on Friday.