Monday, 29 December, 2008 11:57 PM
GMAC Receives $5.0 Billion
Investment from the U.S. Treasury
of conditions to and expiration of its notes exchange offers
YORK -- GMAC Financial Services today announced that it
has sold $5.0 billion of GMAC's preferred membership interests and
warrants to the U.S. Department of the Treasury as a participant
in the Troubled Assets Relief Program established under the Emergency
Act of 2008. The sale was completed today.
announced that General Motors Corp. (GM) and an affiliate of Cerberus
Capital Management contributed to GMAC the $750 million subordinated
participations in the $3.5 billion senior secured credit facility,
as amended, between GMAC and Residential Capital, LLC in exchange
for new common equity of GMAC. In addition, GMAC announced that
GM and an affiliate of Cerberus Capital Management entered into
agreements to purchase $1.25 billion of new common equity. The U.S.
Treasury and GM intend to enter into an agreement for the Treasury
to fund GM's share of the new common equity.
announced that the conditions to its previously announced separate
private exchange offers and cash tender offers have been satisfied
and that GMAC has accepted all of the validly tendered GMAC old
notes and ResCap old notes. The GMAC offers and the ResCap offers
are expected to settle promptly.
approval of its bank holding company application from the U.S. Federal
Reserve Board on Dec. 24, 2008. As a bank holding company, GMAC
has improved access to funding to provide financing to consumers
and businesses. In particular, the company intends to act quickly
to resume automotive lending to a broader spectrum of customers
to support the availability of credit to consumers and businesses
for the purchase of automobiles.
About GMAC Financial Services
Services is a global finance company operating in and servicing
North America, South America, Europe and Asia-Pacific. GMAC specializes
in automotive finance, real estate finance, insurance, commercial
finance and online banking. As of Dec. 31, 2007, the organization
had $248 billion in assets and serviced 15 million customers.
GMAC Financial Services