General Motors 2012 Annual Report Download - page 123

GENERAL MOTORS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Credit Facilities
The following table summarizes further details regarding terms and availability of GM Financial’s credit facilities at December 31,
2012 (dollars in millions):
Facility
Amount
Advances
Outstanding
Assets
Pledged
Restricted
Cash
Pledged (a)
Syndicated warehouse facility (b) ............................................. $2,500 $ — $ — $—
Canada lease warehouse facility (c) ............................................ $ 803 354 540 3
U.S. lease warehouse facility (d) .............................................. $ 600 — — —
$354 $540 $ 3
(a) These amounts do not include cash collected on finance receivables and leasing related assets pledged of $12 million which is
included in Restricted cash and marketable securities.
(b) In May 2013 when the revolving period ends, and if the facility is not renewed, the outstanding balance will be repaid over time
based on the amortization of the receivables pledged until February 2020 when the remaining balance will be due and payable.
(c) In July 2013 when the revolving period ends, and if the facility is not renewed, the outstanding balance will be repaid over time
based on the amortization of the leasing related assets pledged until January 2019 when any remaining balance will be due and
payable. Borrowings in the facility are collateralized by leased assets. At December 31, 2012 the facility amount represents
Canadian Dollar (CAD) $800 million and the advances outstanding amount represents CAD $353 million.
(d) In January 2013 GM Financial extended the maturity date of this facility to May 2014. In May 2014 when the revolving period
ends, and if the facility is not renewed, the outstanding balance will be repaid over time based on the amortization of the related
leased assets pledged until November 2019 when any remaining amount outstanding will be due and payable.
As previously described GM Financial has the ability to borrow against our three-year $5.5 billion secured revolving credit facility.
Credit Facility Covenants
GM Financial is required to hold certain funds in restricted cash accounts to provide additional collateral for borrowings under the
credit facilities. 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, restrict GM Financial’s ability
to obtain additional borrowings and/or remove GM Financial as servicer. As of December 31, 2012 GM Financial was in compliance
with all covenants in its credit facilities.
Securitization Notes Payable
Securitization notes payable represents debt issued by GM Financial in securitization transactions. Debt issuance costs are
amortized over the expected term of the securitizations on an effective yield basis. As a result of the acquisition, GM Financial
recorded a purchase accounting premium of $133 million that is being amortized over the expected term of the notes. At
December 31, 2012 and 2011 unamortized purchase accounting premium of $11 million and $43 million is included in Securitization
notes payable.
General Motors Company 2012 ANNUAL REPORT120