General Motors 2010 Annual Report Download - page 87

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Available Liquidity
The following table summarizes GM Financial’s available liquidity (dollars in millions):
Successor
December 31, 2010
Cash and cash equivalents ....................................................................... $195
Borrowing capacity on unpledged eligible receivables ................................................. 272
Total liquidity ................................................................................. $467
Credit Facilities
In the normal course of business, in addition to using available cash, GM Financial pledges receivables to and borrows under credit
facilities to fund operations and repays these borrowings as appropriate under GM Financial’s cash management strategy. The
following table summarizes credit facilities at December 31, 2010 (dollars in millions):
Successor
Facility Amount Advances Outstanding
Syndicated warehouse facility (a) .................................................. $1,300 $278
Medium-term note facility (b) ..................................................... 490
Bank funding facilities (c) ........................................................ 64
Total ......................................................................... $832
(a) In February 2011 GM Financial extended the maturity date of the syndicated warehouse facility to May 2012 and increased the
borrowing capacity to $2.0 billion from $1.3 billion.
(b) The revolving period under this facility has ended and the outstanding debt balance will be repaid over time based on the
amortization of the receivables pledged until October 2016 when any remaining amount outstanding will be due and payable.
(c) The revolving period under this facility has ended and the outstanding debt balance under the bank funding facilities are secured
by asset-backed securities of $65 million.
GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under the
credit facilities and securitization notes payable. GM Financial’s funding agreements contain various covenants requiring minimum
financial ratios, asset quality and portfolio performance ratios (portfolio net loss and delinquency ratios, and pool level cumulative net
loss ratios) as well as limits on deferment levels. Failure to meet any of these covenants could result in an event of default under these
agreements. If an event of default occurs under these agreements, the lenders could elect to declare all amounts outstanding under
these agreements to be immediately due and payable, enforce their interests against collateral pledged under these agreements or, with
respect to the syndicated warehouse facility, restrict GM Financial’s ability to obtain additional borrowings.
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