GMAC Reaches $7 Billion In SmartNotes(SM) Outstandings
Jun 20, 2001
DETROIT - General Motors Acceptance Corporation (GMAC) announced today that it has exceeded $7 billion in outstandings in its SmartNotes program. SmartNotes (www.smartnotes.com) are GMAC's fixed-income medium-term securities designed specifically for individual investors.
"SmartNotes offer individual investors an opportunity to participate in GMAC securities specifically tailored to the retail investor," said William F. Muir, GMAC executive vice president and chief financial officer, in announcing the milestone. "We are very pleased with the response and interest shown from individual investors for our SmartNotes and we also appreciate the support of the brokerage community involved with the SmartNotes program," he added. Introduced in September 1996, SmartNotes are available by prospectus only in increments of $1,000. The purchasing agent is the LaSalle Broker Dealer Services Division, a Division of ABN AMRO Financial Services, Inc. (LaSalle).
Patrick J. Kelly, LaSalle managing director, noted, "SmartNotes was the first corporate program of its type to offer individual investors a fixed income product specifically designed to meet their needs. SmartNotes continue to be the bellwether program for individual investors."
SmartNotes are offered weekly to individual investors through a network of participating National Association of Security Dealers (NASD) broker-dealers. SmartNotes are repriced every Friday and generally offered through the following Thursday. Maturity dates normally range from two to 15 years, but can range from nine months to 30 years. Payment options include annual, semi-annual, quarterly and monthly interest payment dates. A survivor's option is often offered, which gives investors greater flexibility in the coordination of investment and estate planning needs.
SmartNotes are unsecured debt obligations of GMAC and feature both a "non-callable" and a "callable" format. "Callable" notes or bonds are securities that may be recalled from the investor by GMAC at some future defined date at a defined amount (plus accrued interest), but prior to the otherwise stated maturity date.
GMAC recently expanded the SmartNotes CoAgent group from five to nine members with ABN AMRO Financial Services, Inc. continuing to act as the Purchasing Agent for the program. The CoAgent group now includes A.G. Edwards & Sons, Inc., Edward D. Jones & Co., L.P., Fidelity Capital Markets, Merrill Lynch & Co., Morgan Stanley Dean Witter, Prudential Securities, Salomon Smith Barney, Charles Schwab & Co., Inc., and UBS PaineWebber Inc. In addition, SmartNotes also are available through more than 250 participating NASD member brokerage firms. Investors interested in SmartNotes should contact a licensed broker for a prospectus and more details or call 888-271-4066.
General Motors Acceptance Corporation, a wholly owned subsidiary of General Motors Corp. (NYSE: GM), is one of the world's largest financial services companies with 29,000 employees in 40 countries. Earnings in 2000 were $1.6 billion, from automotive financing, insurance, commercial and residential mortgages, real estate services and commercial finance. More information on GMAC Financial Services is available at http://www.gmacfs.com.