Press Room

GMAC Announces Results of Debt Tender Offers

Oct 13, 2006

DETROIT – GMAC Financial Services today announced the results of its tender offers for two series of its outstanding debt securities representing an aggregate purchase price of approximately $1.06 billion. The tender offers expired at midnight, EDT, on Thursday, Oct. 12, 2006.

At the time of the offers' expiration, holders had tendered approximately $700 million in accreted value at maturity of Deferred Interest Debentures due Dec. 1, 2012, and approximately $1.09 billion in accreted value at maturity of Deferred Interest Debentures due June 15, 2015.

Holders of debentures tendered by Sept. 27, 2006 and accepted, will receive $6,600 for each $10,000 of accreted value at maturity of 2012 Debentures and $5,600 for each $10,000 of accreted value at maturity of 2015 Debentures. Each includes an early tender premium of $200.

Holder of debentures tendered after Sept. 27, 2006 but before the expiration of the offers and accepted, will receive $6,400 for each $10,000 of accreted value at maturity of the 2012 Debentures and $5,400 for each $10,000 of accreted value at maturity of the 2015 Debentures.

“We are very pleased with the results of the tender offer,” said Sanjiv Khattri, GMAC executive vice president and chief financial officer. “We have reduced the level of our higher cost debt, which will help us continue to improve our capital structure as we prepare for a future as a stand-alone, diversified financial services company.”

On Sept. 28, GMAC announced an increase in the maximum aggregate purchase price of its offer to purchase to $1 billion, from the original amount of $500 million. All debentures tendered by First Priority Holders (those with $100,000 or less of accreted value at maturity and as defined in the Offer to Purchase) will be accepted for payment by GMAC. However, since the aggregate purchase price represented by tendered debentures exceeded the maximum amount of $1 billion, debentures tendered by Second Priority Holders (all other holders as defined in the Offer to Purchase) will be accepted on a pro-rata basis. The pro-ration factor for debentures tendered by Second Priority Holders is approximately 98.4 percent. Debentures not accepted for payment due to pro-ration will be promptly returned. For complete details regarding priority and pro-ration, holders should read the Offer to Purchase.

Questions regarding the tender offer should be directed to D.F. King & Co., Inc., the information agent, at 800.859.8511( U.S. toll-free).

GMAC is a global financial services company that operates in approximately 40 countries, in auto finance, residential mortgage, insurance and commercial finance businesses. With more than $300 billion in assets, it generated nearly $2.4 billion in net income in 2005, on net revenues of $19.2 billion. General Motors, which currently owns all of the equity of GMAC, announced earlier this year that it expects to sell a majority of its interest to a consortium of investors led by Cerberus Capital Management.



In this press release and comments by GMAC LLC (“GMAC”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” “designed,” “impact,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements herein and in related management comments, other than statements of historical fact, including without limitation, statements about future events and 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 GMAC's actual results may differ materially due to numerous important factors that are described in GMAC's most recent report on SEC Form 10-K, which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. Such factors include, among others, the following: the ability of General Motors (“GM”), our parent, to complete a transaction with a strategic investor regarding a controlling interest in GMAC while maintaining a significant stake in GMAC, securing separate credit ratings and low cost funding to sustain growth for GMAC and Residential Capital Corporation (“ResCap”) and maintaining the mutually beneficial relationship between GMAC and GM; significant changes in the competitive environment and the effect of competition in the company's markets, including on the company's pricing policies; our ability to maintain adequate financing sources; our ability to maintain an appropriate level of debt; the profitability and financial condition of GM, including changes in production or sales of GM vehicles, risks based on GM's contingent benefit guarantees and the possibility of labor strikes or work stoppages at GM or at key suppliers such as Delphi Corporation; funding obligations under GM and its subsidiaries' qualified U.S. defined benefits pension plans; restrictions on ResCap's ability to pay dividends and prepay subordinated debt obligations to us; changes in the residual value of off-lease vehicles; changes in U.S. government –sponsored mortgage programs or disruptions in the markets in which our mortgage subsidiaries operate; changes in our contractual servicing rights; costs and risks associated with litigation; changes in our accounting assumptions that may require adjustments or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in the credit ratings of GMAC or GM; the threat of natural calamities; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations.

Investors are cautioned not to place undue reliance on forward-looking statements. GMAC undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.

Joanne Krell
GMAC Global Communications
313.378.9271 mobile

Michael Stoller
GMAC Global Communications
313.720.8036 mobile

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