ResCap seeks $3.5 billion credit facility from GMAC

By Sara Rosenberg

New York, May 2 - Residential Capital LLC (ResCap) is currently in negotiations with GMAC LLC regarding a new $3.5 billion first-lien senior secured credit facility, according to a news release.

Obtaining the credit facility is a condition of the company's proposed cash tender and exchange offers for any and all of its dollar equivalent $12.8 billion outstanding notes.

In the offers, ResCap will offer to issue new 8.5% senior secured guaranteed notes due 2010 in exchange for existing 2008 and 2009 notes, and new 9.625% junior secured guaranteed notes due 2015 in exchange for existing 2010 through 2015 notes.

In addition, holders participating in the exchange offers will be able to elect to receive cash in place of the new notes that they would otherwise receive under a modified Dutch auction process.

The new senior secured guaranteed notes will be secured on a second-lien basis by the collateral for the credit facility and the new junior secured guaranteed notes will be secured on a third-lien basis by the collateral.

The company also plans on commencing a cash tender offer for any and all of its outstanding $1.199 floating rate notes due June 9.

ResCap, an indirect wholly owned subsidiary of GMAC Financial Services, is a Minneapolis-based real estate finance company focused primarily on the residential market.

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