Irvine-based Kia Motors America Inc., the U.S. headquarters of South Korea’s Kia Motors Corp., itself part of Seoul-based Hyundai Motor Co., said it has arranged a $305 million revolving credit line with three U.S. lenders.
The three-year agreement is led by Wells Fargo Foothill, part of Wells Fargo & Co., with Banc of America Securities LLC and JPMorgan Chase Bank acting as secondary lenders.
The credit line replaces a $300 million agreement with Bank of America Corp., according to a Bloomberg report. Terms of the new credit line weren’t disclosed.
According to Bloomberg, the money will not be used for consumer or dealer financing. It should be funneled at least partially to marketing expenses, the report said.
“With credit being extremely tight these days, we are especially pleased these institutions recognize KMA’s stronghold in the U.S. automotive market,” said Byeong Wook (David) Kim, Kia Motors America’s chief financial officer. “KMA is growing and continuing to gain market share and this is further recognition of the strength of our business commitment.”
Kia Motors has been besting its competitors during the overall automotive downturn. Kia Motor America sold 22,073 vehicles in February compared to 21,988 vehicles a year earlier.
Overall U.S. auto sales in February stayed at quarter-century lows for the fifth straight month with industry leaders Ford Motor Co. down 49% and Toyota Motor Corp. down 40%.
