GMAC extends early deadline on exchange, tender offers by one day

By Susanna Moon

Chicago, Dec. 2 - GMAC LLC said it delayed the withdrawal deadline and early delivery date on its private exchange offers and tender offers by one day to 5 p.m. ET on Dec. 5.

GMAC also plans to distribute supplements to confidential offering memoranda previously distributed on the GMAC and Residential Capital, LLC offers, containing changes to the terms and conditions of those offers. They will be set forth in an 8-K filing with the Securities and Exchange Commission.

Global Bondholder Services Corp. (866 794-2200) is the information agent.

On Oct. 30, the company announced plans for a private offer to exchange a significant amount of its outstanding debt for a reduced principal amount of new debt.

Exchange offers and tender offers for $38 billion of some outstanding GMAC and ResCap debt securities began on Nov. 20

In the offers, GMAC is offering to purchase and/or exchange any and all of several notes series for, at the election of each eligible holder, either (a) new securities, consisting of (i) a combination of newly issued senior guaranteed notes for the old GMAC notes maturing prior to 2031 or a combination of new guaranteed notes and newly issued 8% subordinated notes due 2018 for old GMAC notes due 2031, and (ii) newly issued 5% perpetual senior preferred stock with a liquidation preference of $1,000 per share of a wholly owned subsidiary of GMAC; or (b) cash.

The offers are set to end at 11:59 p.m. ET on Dec. 18.

GMAC also said it is in discussions with federal regulatory authorities regarding, among other things, seeking bank holding company status and has submitted an application to the U.S. Treasury to participate in the capital purchase program created under the Emergency Economic Stabilization Act of 2008, which is conditional upon becoming a bank holding company.

In connection with this initiative, GMAC said it is considering raising and maintaining significant amounts of additional capital to meet regulatory requirements related to bank holding company status.

GMAC noted that it also expects to have expanded opportunities for funding and for access to capital as a bank holding company.

"The benefits of this type of restructuring would allow us to put additional capital and liquidity resources immediately to work in financing consumers and automotive dealers," GMAC chief executive officer Alvaro G. de Molina said in a news release.

GMAC is a Detroit-based diversified financial services company.

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