Daimler reaches deal on $12 billion credit line with banks

BERLIN (Bloomberg) -- Daimler reached an agreement with a consortium of banks for a 9 billion euro ($12 billion) credit line for the next five years.

The credit facility will replace an existing line worth 7 billion euros that would have expired in 2015, the carmaker said in a statement today.

Daimler has options to extend the length of the new credit to 2020.

CEO Dieter Zetsche has vowed to regain the top spot in premium-car sales by the end of the decade after dropping to third place behind BMW and Audi.

The effort to overtake the two rivals will be based on investment in new models, particularly in the popular compact segment.

Daimler said it doesn't plan to utilize the new facility, which was "substantially oversubscribed." "We are delighted with the great interest in this credit line," Chief Financial Officer Bodo Uebber said in the statement. "We decided to renew the existing credit line at this early stage primarily due to the favorable market conditions, and have thus gained a sound liquidity cushion for the longer term."

More than 40 European, American and Asian banks are a part of the consortium, Daimler said.