Exhibit 99.2
GMAC ANNOUNCES CONSUMMATION OF ITS NOTES EXCHANGE OFFERS
NEW YORK (Dec. 31, 2008) – GMAC Financial Services today announced that it has consummated its separate private exchange offers and cash tender offers to purchase and/or exchange certain of its and its subsidiaries’ (the “GMAC offers”) and Residential Capital, LLC’s (the “ResCap offers”) outstanding notes specified in the tables below (the “GMAC old notes” and the “ResCap old notes”, respectively). Approximately $17.5 billion in aggregate principal amount (or 59%) of the outstanding GMAC old notes were validly tendered and accepted in the GMAC offers and approximately $3.7 billion in aggregate principal amount (or 39%) of the outstanding ResCap old notes were validly tendered and accepted in the ResCap offers.
Consummation of the GMAC offers will result in the issuance of approximately $11.9 billion aggregate principal amount of new GMAC senior guaranteed notes of various series and approximately $2.6 billion aggregate liquidation preference of new GMAC cumulative perpetual preferred stock.
The table below shows, for each series of existing GMAC notes, the aggregate principal amount tendered and accepted and the related aggregate principal amount of new senior guaranteed notes that will be issued.
Series of Old Notes | Principal Amount Tendered and Accepted | Principal Amount of Related New Senior Guaranteed Notes Issued | ||||
Euribor + 1.250% Notes due 2009 | EUR | 309,193,000 | USD | 323,103,000 | ||
4.750% Notes due 2009 | EUR | 225,680,000 | USD | 211,885,000 | ||
6.500% Notes due 2009 | USD | 149,677,000 | USD | 126,982,000 | ||
7.750% Notes due 2010 | USD | 1,181,709,000 | USD | 778,854,000 | ||
5.750% Notes due May 2010 | EUR | 36,734,000 | USD | 34,327,000 | ||
5.750% Notes due Sept. 2010 | EUR | 456,475,000 | USD | 448,949,000 | ||
6.625% Notes due 2010 | GBP | 51,833,000 | USD | 48,830,000 | ||
7.250% Notes due 2011 | USD | 1,202,931,000 | USD | 802,159,000 | ||
6.000% Notes due Apr. 2011 | USD | 174,284,000 | USD | 122,605,000 | ||
5.375% Notes due 2011 | EUR | 594,069,000 | USD | 570,441,000 | ||
6.875% Notes due 2011 | USD | 4,347,883,000 | USD | 3,087,771,000 | ||
6.000% Notes due Dec. 2011 | USD | 871,998,000 | USD | 562,268,000 | ||
7.000% Notes due 2012 | USD | 544,784,000 | USD | 357,492,000 | ||
6.625% Notes due 2012 | USD | 613,701,000 | USD | 407,348,000 | ||
6.000% Notes due 2012 | EUR | 136,772,000 | USD | 129,264,000 | ||
6.875% Notes due 2012 | USD | 1,198,666,000 | USD | 784,677,000 | ||
6.750% Notes due 2014 | USD | 1,194,091,000 | USD | 764,653,000 | ||
Libor + 2.200% Notes due 2014 | USD | 471,615,000 | USD | 294,768,000 | ||
8.000% Notes due 2031 | USD | 3,034,460,000 | USD | 1,995,021,000 | ||
Consummation of the ResCap offer will result in the issuance of approximately $688 million aggregate principal amount of new GMAC 7.50% senior notes due 2013 and approximately $483 million aggregate principal amount of new GMAC 8.00% subordinated notes due 2018.
The table below shows for each series of existing ResCap notes the aggregate principal amount tendered and accepted.
Series of Old Notes | Principal Amount Tendered and Accepted | ||
Libor + 3.10% Floating Rate Notes due April 2009 | USD | 6,225,000 | |
Libor + 3.83% Floating Rate Subordinated Notes due April 2009 | USD | 15,000,000 | |
Libor + 3.10% Floating Rate Notes due May 2009 | USD | 12,940,000 | |
8.500% Senior Secured Guaranteed Notes due 2010 | USD | 830,511,000 | |
8.375% Notes due 2010 | USD | 429,211,000 | |
Euribor + 3.45% Floating Rate Notes due 2010 | EUR | 18,100,000 | |
8.000% Notes due 2011 | USD | 9,372,000 | |
7.125% Notes due 2012 | EUR | 12,295,000 | |
8.500% Notes due 2012 | USD | 15,089,000 | |
8.500% Notes due 2013 | USD | 401,417,000 | |
8.375% Notes due 2013 | GBP | 3,965,000 | |
9.875% Notes due 2014 | GBP | 1,000,000 | |
9.625% Junior Secured Guaranteed Notes due 2015 | USD | 1,889,828,000 | |
8.875% Notes due 2015 | USD | 38,728,000 | |
The cash elections for each of the GMAC offers and the ResCap offers were oversubscribed. As a result, each eligible holder who made a cash election in the GMAC offers will have approximately 23.2% of the amount of old notes it tendered accepted for cash, and the balance of old notes each such holder tendered that was not accepted for purchase for cash will be exchanged into new securities, in the amount determined pursuant to the applicable new securities exchange ratios, as if such holder had made a new securities election with respect to such balance of old notes. Furthermore, each eligible holder who made a cash election in the ResCap offers will have approximately 47.8% of the amount of old notes it tendered accepted for cash, and the balance of old notes each such holder tendered that was not accepted for purchase for cash will be exchanged into new securities, in the amount determined pursuant to the applicable new securities exchange ratios, as if such holder had made a new securities election with respect to such balance of old notes.
To determine the consideration paid, the principal amounts of old notes denominated in Euros and Sterling have been converted to U.S. dollars at currency exchange rates set on December 24, 2008 of $1.3964/EUR and $1.4673/GBP.
About GMAC Financial Services
GMAC Financial 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. Visit the GMAC media site at http://media.gmacfs.com/ for more information.
Forward-Looking Statements
This press release contains various forward-looking statements within the meaning of applicable federal securities laws, including the Private Securities Litigation Reform Act of 1995, that are based upon our current expectations and assumptions concerning future events, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated.
The words “expect,” “anticipate,” “initiative,” “plan,” “intend,” “may,” “would,” “could,” “should,” “believe,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements contained in or incorporated by reference into this press release, other than statements of historical fact, including, without limitation, statements about our plans, strategies, prospects and expectations regarding future events and our financial performance, are forward-looking statements that involve certain risks and uncertainties.
While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and our actual results may differ materially due to numerous important factors that are described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2007, as updated by our subsequent Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K. Many of these risks, uncertainties and assumptions are beyond our control, and may cause our actual results and performance to differ materially from our expectations. Factors that could cause our actual results to be materially different from our expectations include, among others, the final settlement amounts and proration factors described above in this press release. Accordingly, you should not place undue reliance on the forward-looking statements contained or incorporated by reference in this press release. These forward-looking statements speak only as of the date on which the statements were made. We undertake no obligation to update publicly or otherwise revise any forward-looking statements, except where expressly required by law.
Contacts:
Gina Proia
917-369-2364
914-714-9166-mobile
gina.proia@gmacfs.com
Toni Simonetti
917-369-2360
917-822-3392-mobile
toni.simonetti@gmacfs.com