General Motors 2012 Annual Report Download - page 53

GENERAL MOTORS COMPANY AND SUBSIDIARIES
Senior Notes
In August 2012 GM Financial issued 4.75% senior notes of $1.0 billion which are due in August 2017 with interest payable
semiannually. GM Financial intends to use the net proceeds from this offering for general corporate purposes including, but not
limited to, acquisitions.
In June 2011 GM Financial issued 6.75% senior notes of $0.5 billion which are due in June 2018 with interest payable
semiannually. In July 2011 proceeds of $0.1 billion 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.
Refer to Note 17 to our consolidated financial statements for additional details about these debt issuances.
Credit Facilities
In the normal course of business, in addition to using available cash, GM Financial pledges assets 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 those credit facilities (dollars in millions):
December 31, 2012 December 31, 2011
Facility Amount Advances Outstanding Facility Amount Advances Outstanding
Syndicated warehouse facility (a) ................... $2,500 $ — $2,000 $ 621
Canada lease warehouse facility (b) .................. $ 803 354 $ 589 181
U.S. lease warehouse facility (c) .................... $ 600 — $ 600 —
Medium-term note facility (d) ...................... — 294
Bank funding facility ............................. — 3
Total .......................................... $354 $1,099
(a) 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.
(b) 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. The facility amount represents CAD $800 million and CAD $600 million at December 31, 2012 and 2011, and the
advances outstanding amount represents CAD $353 million and CAD $185 million at December 31, 2012 and 2011.
(c) 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 leasing
related assets pledged until November 2019 when any remaining amount outstanding will be due and payable.
(d) In October 2012 this facility was paid in full and subsequently terminated.
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.
General Motors Company 2012 ANNUAL REPORT50