General Motors (GM) has entered into a Master IPU Agreement to establish a product financing program designed to secure critical inventory and mitigate potential supply chain disruptions. The program allows a paying agent, Procura Auto Parts LLC, to advance funds to GM's suppliers, enabling them to acquire and hold inventory on GM's behalf until needed for vehicle production.
Key Details
- Facility Limit: The program provides for a maximum of $4.5 billion in irrevocable payment undertakings (IPUs) to be outstanding at any time.
- Term & Repayment: The program has a twelve-month availability period commencing August 7, 2026, with final payments on IPUs due no later than August 6, 2029.
- Financial Terms: Interest will accrue on outstanding obligations at a rate of the Secured Overnight Financing Rate (SOFR) plus 1.55% per annum. A ticking fee of 0.25% per annum will be paid on the unutilized portion of the facility.