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General Motors

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announced Friday it intends to draw down the remaining $3.5 billion of its $4.5 billion line of credit.

The automaker said the move is aimed at maintaining a "high level of financial flexibility" as it continues to restructure during uncertain times in the capital markets.

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"Accessing the funds available to us is a prudent liquidity measure. Drawing on the revolver now improves our liquidity position at a time when the capital markets have become more challenging," said Walter Borst, GM's treasurer.

The company set up the secured revolving credit facility in July 2006 with a consortium of banks.

Also Friday, GM announced the completion of a $322 million debt to equity exchange that the company says will improve its liquidity by reducing debt and interest costs. GM issued 28.3 million new shares of its common stock in exchange for $322 million principal amount of its 1.5% Series D Senior Convertible Debentures, which mature in June 2009.

GM shares finished Friday up $3.15 at $13.08.

This article was written by a staff member of