General Electric (NYSE:GE) has announced that it has entered into a $15 billion unsecured back-up revolving credit agreement extended by 32 banks. The new credit facility replaces a $20 billion revolving credit facility that was set to expire in May 2021. 

The closing of this agreement also terminates a credit facility that was set to expire in December 2020, which had a commitment amount of $4 billion remaining after the close of GE Healthcare's sale of its BioPharma unit to Danaher (NYSE:DHR)

banker handing out cash representing loan

Image source: Getty Images.

GE has been working to shore up its balance sheet and increase its financial flexibility. The BioPharma sale to Danaher provided the company net proceeds of approximately $20 billion. Subsequent to that deal, GE used $6 billion of the proceeds to repay an intercompany loan to GE Capital on April 1. GE Capital, in turn, repaid $4.7 billion of its debt. 

After the completion of the BioPharma sale, GE CEO Larry Culp described the company's fiscal moves as a "multi-year transformation, fortifying our considerable sources to de-risk our balance sheet and continue to solidify our financial position."

Withdrawals from the new credit facility may be used for general corporate purposes, according to the company filing. It includes a net debt-to-EBITDA financial covenant, and may be prepaid without penalty prior to its maturation date of April 17, 2023.