(Reuters) - General Motors Co (GM.N) secured an $11 billion revolving credit facility, more than doubling its financial cushion and further strengthening the balance sheet of the largest U.S. automaker.
The added liquidity could be used to finance a number of GM's strategic goals, which include breaking even in Europe by mid-decade and a possible purchase of Ally Financial's European and Latin American auto loan operations.
The new credit facility replaces a $5 billion line the company secured more than two years ago in the run-up to its initial public offering in November 2010.
It offers better terms and the ability to borrow in currencies other than the U.S. dollar, GM said in a statement on Monday.
"The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet," Chief Financial Officer Dan Ammann said.
Thirty-five banks from 14 countries, led by JPMorgan Chase & Co (JPM.N) and Citigroup Inc (C.N), participated in the deal.
The deal gives GM a credit facility comparable to those of other companies close to its size, GM spokesman Dave Roman said. Ford Motor Co (F.N), the No. 2 U.S. automaker, boosted its credit facility to $9.3 billion earlier this year.
GM's new credit line consists of a $5.5 billion three-year facility and another $5.5 billion that matures in November 2017. Its earlier $5 billion facility would have matured in 2015.
Under the terms, GM Financial, GM's in-house finance company, can borrow.
Earlier this year, GM was seeking a credit facility of as much as $10 billion, according to people familiar with the matter.
The U.S. government poured $50 billion into GM during the financial crisis to help the one-time blue chip avoid liquidation. The U.S. Treasury nearly
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