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Daimler secures 5-year, $9.8B credit line

Daimler secures 5-year, $9.8B credit line

November 2nd, 2010 in News

BERLIN (AP) - Car maker Daimler AG says it has secured a five-year, 7 billion ($9.8 billion) credit line intended purely as a liquidity reserve.

Daimler said Tuesday that it signed the agreement with a consortium of more than 30 international banks on Oct. 29 and it was significantly oversubscribed.

Chief financial officer Bodo Uebber said Daimler has "secured today's favorable conditions for the next five years and ... gained a solid liquidity buffer for the long term."

Daimler said it doesn't intend to use the credit line, which will serve only as a liquidity reserve. It said it will now terminate two existing syndicated credit lines of $5 billion and 3 billion.

Daimler reported strong third-quarter earnings and lifted its full-year forecast last week.