GMAC Offers $4.5 Billion of Guaranteed Debt
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).
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.
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