General Motors Co. says it has received $11 billion in credit lines from 35 financial institutions in 14 countries, boosting its available cash and credit to more than $42 billion.
The new line replaces a $5 billion credit facility maturing in 2015, according to a statement on GM's website, and offers improved pricing and terms.
"The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet," Chief Financial Officer Dan Ammann said Monday. The new credit line "represents a strong vote of confidence in the financial strength of our company."
Detroit-based GM wouldn't say specifically what it plans to do with the money, only that it's a source of "backup liquidity" that may be used for "strategic initiatives."
But analysts said it could be hoarding the cash to buy back stock, specifically from the U.S. government. The U.S. Treasury Department owns 26.5 percent of the company, which it got in exchange for a $49.5 billion bailout about four years ago.
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