Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Tenders 2008 > News item |
GMAC plans private exchange offer to increase capital
By Jennifer Chiou
New York, Oct. 30 - GMAC Financial Services said it intends to commence a private offer to exchange a significant amount of its outstanding debt for a reduced principal amount of new debt.
The company said that details of this offering will be disclosed in the near future.
GMAC also said it is in discussions with federal regulatory authorities regarding, among other things, seeking bank holding company status, adding that it would obtain increased flexibility and stability to fulfill its core mission of providing automotive and mortgage financing to consumers and businesses.
In connection with this initiative, GMAC said it is considering raising and maintaining significant amounts of additional capital to meet regulatory requirements related to bank holding company status.
GMAC noted that it also expects to have expanded opportunities for funding and for access to capital as a bank holding company.
"The benefits of this type of restructuring would allow us to put additional capital and liquidity resources immediately to work in financing consumers and automotive dealers," GMAC chief executive officer Alvaro G. de Molina said in a news release.
GMAC is a Detroit-based diversified financial services company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.