Detroit – General Motors Corp. has put up a 49 percent stake in its former financial arm as collateral for a $4.1 billion revolving line of credit, the company said Wednesday.
It also announced plans to replace $1.1 billion in convertible securities with new unsecured convertible notes that mature June 1, 2009. The new notes have a later maturity date than the old ones, giving the company more liquidity, said spokeswoman Melisa Tezanos.
Both moves are part of the normal course of business under GM’s restructuring plan, she said.
But David Healy, an analyst with Burnham Securities who owns some GM shares, said the credit line is likely a hedge against what could be a declining U.S. automotive market and a possible strike later this year, when the three major U.S. automakers begin negotiating new contracts with the United Auto Workers.
Healy said he thinks GM is becoming more pessimistic about the auto market through the end of the year.
