General Motors 2011 Annual Report Download - page 126

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
(a) Credit facilities have variable rates of interest and maturities of three years or less. The carrying amount is considered to be a
reasonable estimate of fair value. The fair values of the securitization notes payable and senior notes and convertible senior notes
are based on quoted market prices, when available. If quoted market prices are not available, the fair value is estimated by
discounting future net cash flows expected to be settled using a current risk-adjusted rate.
(b) Senior notes and convertible senior notes are included in GM Financial Other liabilities.
Senior Notes and Convertible Senior Notes
In June 2011 GM Financial issued 6.75% senior notes of $500 million which are due in June 2018 with interest payable
semiannually. In July 2011 proceeds of $71 million from this offering were used to redeem all of GM Financial’s outstanding 8.50%
senior notes due in 2015. The remaining proceeds are to be used for general corporate purposes.
As a result of the acquisition of AmeriCredit, the holders of previous senior notes and convertible senior notes had the right to
require GM Financial to repurchase some or all of their notes as provided in the indentures for such notes. During the three months
ended December 31, 2010 GM Financial repurchased convertible senior notes and senior notes of $463 million.
Credit Facilities
The following table summarizes further details regarding terms and availability of GM Financial’s credit facilities at December 31,
2011 (dollars in millions):
Successor
Facility
Amount
Advances
Outstanding
Assets
Pledged
Restricted
Cash
Pledged (a)
Syndicated warehouse facility (b) ............................................. $2,000 $ 621 $ 821 $ 17
U.S.leasewarehousefacility(c) .............................................. $ 600 — — —
Canada lease warehouse facility (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 589 181 274 1
Medium-termnotefacility(e) ................................................ 294 322 84
Bank funding facility ....................................................... 3 — —
$1,099 $1,417 $102
(a) These amounts do not include cash collected on finance receivables pledged of $35 million which is included in GM Financial
Restricted cash at December 31, 2011.
(b) 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.
(c) In January 2012 GM Financial extended the maturity date of the lease warehouse facility for lease originations in the U.S. to
January 2013. Borrowings on the facility are collateralized by leased assets.
(d) In July 2011 GM Financial Canada Leasing Ltd., a subsidiary of GM Financial entered into a lease warehouse facility for lease
originations in Canada that matures in July 2012. Borrowings on the facility are collateralized by leased assets. The facility
amount represents CAD $600 million at December 31, 2011.
(e) 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.
Credit Facility Covenants
GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under
certain of its credit facilities. The credit facilities contain various covenants requiring minimum financial ratios, asset quality and
124 General Motors Company 2011 Annual Report