By Paul Deckelman
New York, March 23 - GMAC Inc. priced a $400 add-on tranche to its recently sold $1.5 billion issue of 10-year senior notes (B3/B/B) on Tuesday, high yield primary market sources said.
The offering of 8% notes due March 15, 2020 came to market quickly and quietly, with little if any fanfare.
The bonds - which are non-callable for life - priced at 99.153 to yield 8 1/8%.
There had been no price talk on the issue.
The Rule 144A deal was brought to market by sole manager J.P. Morgan Securities Inc. That was a change from the original mega-deal which was done by joint bookrunners Deutsche Bank Securities Inc., Morgan Stanley & Co. Inc., Bank of America Merrill Lynch and Citigroup Global Markets Inc.
That original deal priced on March 10 at 98.32 to yield 8¼%.
The deal for GMAC, a Detroit-based automotive and mortgage company formerly owned by General Motors Corp. but now majority-owned by the federal government, is guaranteed by GMAC US LLC; IB Finance Holding Company LLC; GMAC Latin America Holdings LLC; GMAC International Holdings B.V. and GMAC Continental LLC, each of which is a subsidiary of f GMAC.
As was the case with the original offering, the company plans to use the deal proceeds for general corporate purposes.
| Issuer: | GMAC Inc.
|
| Amount: | $400 million
|
| Maturity: | March 15, 2020
|
| Issue: | Senior notes (add-on to $1.5 billion issue priced on March 10)
|
| Bookrunner: | J.P. Morgan Securities Inc
|
| Coupon: | 8%
|
| Price: | 99.153
|
| Yield: | 8 1/8%
|
| Spread: | 445.5 basis points
|
| Call features: | Non-callable
|
| Trade date: | March 22, |
|
| Settlement date: | March 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Fitch: B
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Marketing: | Quick to market
|
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