General Motors 2015 Annual Report Download - page 78

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Table of Contents




Secured debt $ 220
$ 237
Unsecured debt 7,619
8,145
Capital leases 926
968
Total automotive debt(a) $ 8,765
$ 9,350
Fair value utilizing Level 1 inputs $ 6,972
$ 7,550
Fair value utilizing Level 2 inputs – a discounted cash flow model 2,116
2,249
Fair value of automotive debt $ 9,088
$ 9,799
Available under credit facility agreements $ 12,168
$ 12,026
Interest rate range on outstanding debt(b) 0.0-18.0%
0.0-18.0%
Weighted-average interest rate on outstanding short-term debt(b) 9.6%
6.4%
Weighted-average interest rate on outstanding long-term debt(b) 4.7%
4.3%
__________
(a) Includes net discount and debt issuance costs of $549 million and $741 million at December 31, 2015 and 2014.
(b) Includes coupon rates on debt denominated in various foreign currencies and interest free loans.
The observable inputs of the discounted cash flow model included contractual repayment terms and benchmark yield curves, plus a spread based on our
senior unsecured notes that is intended to represent our nonperformance risk. We obtain the benchmark yield curves and yields on unsecured notes from
independent sources that are widely used in the financial industry.

We received an investment grade corporate rating from Moody's in September 2013 and from S&P in September 2014 which allowed the release of the
collateral securing our $11.0 billion revolving credit facilities under their terms.
In October 2014 we amended our two primary revolving credit facilities, increasing our aggregate borrowing capacity from $11.0 billion to $12.5 billion.
These facilities consist of a three-year, $5.0 billion facility and a five-year, $7.5 billion facility. Both facilities are available to the Company as well as certain
wholly-owned subsidiaries, including GM Financial. The three-year, $5.0 billion facility allows for borrowings in U.S. Dollars and other currencies and
includes a GM Financial borrowing sub-limit of $2.0 billion, a letter of credit sub-facility of $1.6 billion and a Brazilian Real sub-facility of $305 million.
The five-year, $7.5 billion facility allows for borrowings in U.S. Dollars and other currencies and includes a GM Financial borrowing sub-limit of $2.0
billion, a letter of credit sub-limit of $500 million and a Brazilian Real sub-facility of $195 million.
The revolving credit facilities contain representations, warranties and covenants that are typical for these types of facilities. The facilities also require us to
maintain at least $4.0 billion in global liquidity and at least $2.0 billion in U.S. liquidity and to guarantee any borrowings by our subsidiaries. If we fail to
maintain an investment grade corporate rating from two or more of the credit rating agencies Fitch, Moody's and S&P, we will be required to provide
guarantees from certain domestic subsidiaries under the terms of the facilities. Interest rates on obligations under the revolving credit facilities are based on
prevailing annual interest rates for Eurodollar loans or an alternative base rate, plus an applicable margin.

In November 2014 we issued $2.5 billion in aggregate principal amount of senior unsecured notes comprising $500 million of 4.0% notes due in 2025,
$750 million of 5.0% notes due in 2035 and $1.25 billion of 5.2% notes due in 2045. In September 2013 we issued $4.5 billion in aggregate principal
amount of senior unsecured notes comprising $1.5 billion of 3.5% notes due in 2018, $1.5 billion of 4.875% notes due in 2023 and $1.5 billion of 6.25%
notes due in 2043. These notes contain terms and covenants customary of these types of securities including limitations on the amount of certain secured
debt we may issue.

In the years ended December 31, 2015 and 2014 we prepaid and retired debt obligations with a total carrying amount of $538 million and $325 million
which primarily represented unsecured debt in Brazil and recorded a net gain on extinguishment of debt
74