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GM AND GMAC FINALIZE AGREEMENTS FOR 6 SYNDICATED BANK CREDIT FACILITIES

 NEW YORK, May 19 /PRNewswire/ -- GM Vice President and Treasurer Charles E. Golden today announced that GM (NYSE: GM) and its financial services subsidiary, General Motors Acceptance Corp. (GMAC), finalized agreements for six syndicated bank credit facilities totaling $20.6 billion -- three of which are in the United States and three in Europe. The six syndicated facilities represent a refinancing of just over half of the bank credit facilities available to General Motors and its subsidiaries worldwide.
 In addition, about $4 billion of other existing credit facilities at various GM and GMAC subsidiaries in Europe, Canada and Australia are also being renegotiated on a one-on-one basis with certain banks in order to extend maturities and convert currently uncommitted facilities into committed revolving credits.
 In total, about $25 billion of the corporation's approximately $40 billion in direct bank credit facilities worldwide will have been refinanced at the conclusion of this project. The other $15 billion, most of which is in place at GM's non-automotive subsidiaries and at GM's automotive and financial operations outside of the United States and Europe, will not be affected.
 A group of 118 banks participated in the syndicated transactions, including virtually all major U.S., Canadian, European and Japanese financial institutions. These banks provided commitments of over $27 billion -- representing an "oversubscription" of nearly 35 percent on the $20.6 billion of syndicated credits.
 "The outstanding success of the syndication effort represents a strong vote of confidence in GM by the worldwide banking community," Golden said. "This is especially gratifying when you consider that this refinancing, the largest transaction of its kind ever executed, occurred in the midst of our turn-around effort in North America."
 The new syndicated credit agreements replace various individual bank credit facilities previously extended to GM and GMAC. In the United States, the newly committed credits will continue to serve as back-up facilities, not as a primary source of funding. In Europe, the syndicated facilities will be used to fund GMAC's financing operations and GM's automotive operations, in line with the corporation's historical reliance on bank debt outside the United States.
 "While the new facilities were not intended to provide General Motors and its subsidiaries with incremental bank credit, they do represent a significant increase in the amount of committed, long-term credit available to the corporation," said Golden. "Thus, the successful conclusion of this transaction is a very important and positive development for the corporation since the strengthened commitments and longer maturities of the new facilities will ensure that GM and GMAC have the necessary credit availability to implement our business strategy."
 The three syndicated facilities in the United States include:
 -- A five-year, $3 billion revolving credit facility to GM;
 -- A four-year, $10 billion revolving credit facility to GMAC;
 -- $5 billion in one-year liquidity and receivables credit facilities to GMAC.
 In Europe, the new syndicated facilities consist of:
 -- A five-year, 2.5 billion deutsche mark (U.S. $1.5 billion) revolving credit facility to Adam Opel A.G., GM's automotive subsidiary in Germany;
 -- A four-year, $500 million revolving credit facility to GMAC International Finance in the Netherlands;
 -- A 400 million pound (U.S. $600 million) revolving credit facility to GMAC (United Kingdom.)
 -0- 5/19/93
 /CONTACT: Toni Simonetti of General Motors, 212-418-6380/
 (GM)


CO: General Motors Corporation; General Motors Acceptance Corp. ST: New York IN: AUT FIN SU:

SB -- DE022 -- 0398 05/19/93 15:21 EDT
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Publication:PR Newswire
Date:May 19, 1993
Words:565
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