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GMAC Recaps $60B Portfolio

NEW YORK CITY-This global refinancing is extending key bank facilities, extending unsecured debt maturities and increasing the amount of available funding.

By Erika Morphy | Updated on June 05, 2008

NEW YORK CITY-A subsidiary of GMAC Financial Services, Residential Capital LLC, has recapitalized a global $60-billion portfolio in a series of complex transactions. The end result for the company is an enhanced liquidity position, an increase in key bank facilities and an extension to some unsecured debt maturities. GMAC did not return calls in time for publication.

It was a deal made up of several moving parts: GMAC obtained a new, globally syndicated $11.4-billion secured revolving credit facility with a three-year maturity. It also renewed the one-year, $10-billion syndicated commercial paper back-up facility, New Center Asset Trust. GMAC also provided a $3.5 billion two-year credit facility to ResCap and an additional $2.4-billion support of the subsidiary’s near term liquidity.

For its part, ResCap extended, for one year, the maturity on all of its bilateral bank facilities totaling approximately $11.6 billion and it obtained a new $2.5-billion syndicated whole loan repurchase facility. ResCap also executed private exchange and cash tender offers to retire the U.S. dollar equivalent of $14 billion of outstanding debt.

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