As of 4:15 p.m. Tuesday, the Detroit-based automaker's stock [NYSE: GM] was trading for about $26.20 a share, up nearly 0.60 cents since the opening bell. The last time the stock was trading for more than $26 a share was in early-April.
A look at GM's stock price over the last six months. (iPhone screenshot)DETROIT, MI- General Motors Co.’s stock is inching toward its highest level in seven months.
As of 4:15 p.m. Tuesday, the Detroit-based automaker’s stock [NYSE: GM] was trading for about $26.20 a share, up nearly 0.60 cents since the opening bell. The last time the stock was trading for more than $26 a share was in early-April.
The surge comes as voters flock to cast their ballots for Election Day and all three of New York debt-rating agencies -- Moody Investors Service and Standard & Poor's and Fitch Ratings -- giving GM’s credit lines an investment-grade rating.
On Monday, GM announced a new $11 billion revolving credit facility consisting of a $5.5 billion three-year facility and a $5.5 billion five-year facility. The Detroit-based automaker acquired the credit from 35 financial institutions in 14 countries. It now has more than $42 billion in available cash and credit.
“The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” said Dan Ammann, GM senior vice president and CFO, in a statement. “This level of commitment from the global banking community represents a strong vote of confidence in the financial strength of our company.”
The facility offers improved pricing and terms, and the ability to borrow in currencies other than U.S. dollars. GM Financial, GM’s captive finance company, will also be able to borrow under the facility, according to officials.
GM expected the new facility to be rated investment grade by each of the major credit rating agencies.
Some analysts have speculated that this year's presidential election could heavily influence GM, due to the U.S. Treasury continuing to own a 26 percent stake in the company as a result of the 2008-2009 automotive bailout.
The company's stock performance also comes a week after announcing a $1.5 billion third-quarter profit and thousands of job cuts in Europe.
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