DETROIT — GMAC Financial Services announced last Friday that it has priced an offering for $4.5 billion of debt guaranteed by the Federal
Deposit Insurance Corporation (FDIC), pursuant to the FDIC Temporary Liquidity
Guarantee Program (TLGP).
This offering
further improves the company's liquidity profile. The securities offering
included $3.5 billion aggregate principal amount of senior fixed rate notes and
$1.0 billion aggregate principal amount of senior floating rate notes, both due
in December 2012.
GMAC intends to
leverage its strengthened liquidity position resulting from this transaction to
support the extension of credit to consumers and businesses, as well as for
other general corporate purposes.
In May 2009, GMAC
received approval to participate in the TLGP for up to $7.4 billion. The approval came amid a series of
transactions to help improve the capital and liquidity position of the company.
The notes and the
FDIC guarantee have not been, and are not required to be, registered with the
Securities and Exchange Commission under the Securities Act of 1933, as
amended. The notes are being offered and sold in reliance upon an exemption
from registration with the SEC provided in Section 3(a)(2) of the Securities
Act.
