Residential Funding gets $750 million revolver

By Sara Rosenberg

New York, Feb. 22 - Residential Funding Co. LLC closed on an up to $750 million revolving credit facility due Aug. 21, 2009 that was provided by GMAC, according to an 8-K filed with the Securities and Exchange Commission Friday.

Pricing on the revolver, which closed on Feb, 21, is Libor plus 300 basis points.

There is a 20 bps unused fee.

The revolver will be used to fund the operations of the company's resort finance business of its Business Capital Group until this business can be sold, or, if unable to be sold, until more long-term financing is arranged.

Security is a membership interest in RFC Resort Funding, LLC, a wholly owned special purpose subsidiary of Residential Funding, certain loans made by Residential Funding to resort developers secured by time-share loans or agreements to purchase timeshares, and certain loans made by Residential Funding to resort developers to fund construction of resorts and resort-related facilities and all collections with respect to the pledged loans.

At close, the company borrowed $635 million under the revolver.

Residential Funding is a provider of capital services to businesses in a variety of markets and a creator of solid fixed-income investment opportunities for institutional investors.

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