GM strategy shift shows liquidity is king

摘要

GENERAL MOTORS' decision to refinance only short-term loan maturities, rather than a larger US$16.5bn loan, shows how much the market for lending to high-rated companies has changed in just a few weeks since the coronavirus outbreak intensified in the US. The carmaker sought to extend maturities on US$6bn in revolving loans rather than refinance a US$16.5bn credit facility following discussions with its bank group. "They knew they wouldn't get any interest in the five-year," a banking source said, referring to the US$10.5bn that the company left in place. "(The banks) had to tell them it was not happening."