US automotive manufacturer General Motors (GM) has secured two revolving credit facilities worth a combined US$11bn.

Both facilities are worth US$5.5bn, with one having a tenor of three years, the other of five years. They replace a US$5bn facility arranged in 2010 and offer GM, the largest automotive company in the US, improved pricing and terms.

It marks a dramatic turnaround in the company’s creditworthiness. Just three years ago, GM received a US$50bn government bailout, which helped it to avoid bankruptcy. GM expects the facility to be rated investment grade by each of the major ratings agencies.

The facility was arranged by JP Morgan, with Citibank acting as syndication agent. The syndicate was comprised of 35 lenders in 14 different countries. However, a GM spokesman was unable to confirm the breakdown of the syndicate or the exact pricing of the credit to GTR.

The composition of the arrangement includes a GM Financial (the financial services arm of GM) borrowing sub-limit of US$4bn, a multi-currency borrowing sub-limit of US$3.5bn, a Brazilian real borrowing sub-limit of US$0.5bn and a letter of credit sub-facility limit of US$1.5bn.

The facility more than doubles GM’s previously accessible liquidity and should help it to withstand the ongoing European downturn, as well as oversee expansion in the Americas.

In a written statement, GM senior vice-president and CFO Dan Ammann said: “The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet. This level of commitment from the global banking community represents a strong vote of confidence in the financial strength of our company.”