GMAC seeks tenders for $500 million of deferred interest debentures

By Laura Lutz

Des Moines, Sept. 14 - GMAC Financial Services announced a tender offer for its deferred interest debentures due Dec. 1, 2012 and June 14, 2015. The offer applies to a total purchase price of $500 million, or about 30%, of the outstanding debentures.

The offer began on Sept. 14, and it will expire at midnight ET on Oct. 12.

The company is offering $6,600 for each $10,000 accreted value at maturity of 2012 debentures tendered. That price is equal to 78% of their $8,460.42 accreted value as of Oct. 12.

For the 2015 debentures, the company is offering $5,600 for each $10,000 accreted value at maturity, equal to 70% of their $7,948.09 accreted value on Oct. 12.

Those prices include an early tender premium of $200 for debentures tendered by 5 p.m. ET on Sept. 27. Debentures tendered after that deadline will not receive the premium.

The tender offer will be financed from GMAC's existing cash.

Morgan Stanley & Co. Inc. (800 624-1808 or collect 212 761-1864); Barclays Capital Inc. (866 307-8991 or collect 212 412-4072); and Merrill Lynch, Pierce, Fenner & Smith Inc. (888 654-8637 or collect 212 449-4914) are the dealer managers for the offer.

D.F. King & Co., Inc. (800 859-8511) is the information agent.

Detroit-based GMAC is a financial services company. General Motors Corp., which currently owns all of the equity of GMAC, announced earlier this year that it will sell a majority of its interest to a consortium of investors led by Cerberus Capital Management.

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