General Electric (NYSE:GE) is asking its lenders to replace its existing $20B revolving credit facility with a new debt package that will come with a smaller size and shorter maturities, Reuters reports.

GE is said to believe a $15B package is more appropriate given that the company has divested a number of assets, and a banking source says extending the new loans over three years is less risky than a five-year loan in light of the volatile market.

The shorter-dated loan also is better for banks as longer-term capital is more expensive, especially for institutions that borrow overnight to fund themselves.

According to the report, GE originally wanted to replace its $20B in loans expiring next year with a three-year and a five-year loan, but the longer option was not available, and the new loan deal is expected to be priced higher than the current loan.





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