News of General Motors' plans to amend its credit facility sent a number of debt holders to sell. One bank estimated it traded $25 million of debt, while another bank also traded a big block. Despite the selling, the $5.6 billion revolver only dropped two points to 95. Its '33 bonds are down half-a-point to one point, to 75. One trader said it was hard to tell if the bonds moved because of the loan announcement or general market conditions. He said the amendment was expected and that is why it did not have a dramatic effect.

The company will amend and extend its existing $5.6 billion revolver. Under the proposal, existing lenders will receive a 20% reduction in their commitments and have the opportunity to extend those commitments to 2011 in return for collateral, pricing and other structural enhancements.

"GM values its long-standing relationships with its banks and believes that these proposed changes to the facility will be beneficial for all parties," Walter Borst, GM treasurer, said in a release. Other executives at GM could not be reached. Moody's Investors Service assigned a B2 to the deal and Standard & Poor's assigned a B+.