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GMAC Announces Completion of Global Refinancing

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GMAC Financial Services, and its wholly owned subsidiary, Residential Capital, LLC (ResCap), today announced one of the largest global refinancings ever completed. The companies have executed a comprehensive series of transactions, which include extending key bank facilities, increasing the amount of available funding and further enhancing liquidity positions. Also, ResCap successfully extended unsecured debt maturities, renewed critical funding lines, and gained further liquidity support from GMAC and its shareholders.

"I am extremely proud of our team's achievement. Executing a transaction of this magnitude and complexity in such a challenging capital markets environment demonstrates the dedication of our people and the international banking community's confidence in our company," said GMAC Chief Executive Officer Alvaro G. de Molina. "We look forward to building GMAC's competitive advantage and strengthening our core business."

"This is one of the largest and most complex refinancings we have undertaken," said James B. Lee, Jr., vice chairman of JPMorgan Chase. "The global banking community has come together to support GMAC and its terrific management team, representing the market's confidence in the companies and GMAC's shareholders - General Motors and Cerberus."

"Given GMAC's strategic importance to GM, we are delighted with the outcome of this refinancing," said GM Chief Operating Officer Fritz Henderson. "We're pleased with the response from the capital markets and with the resourcefulness and commitment of our partner, Cerberus."

The global refinancing includes:  
-- Over $60 billion of refinanced debt and new facilities, including both loan facilities and bond issues.  
-- More than 50 institutions from around the globe are participating in the refinancing.  
-- GMAC provided a $3.5 billion two-year credit facility to ResCap, which includes $750 million of first loss protection from General Motors Corp. and Cerberus Capital Management, L.P.  
-- $2.4 billion of actions taken by GMAC and Cerberus Capital to support ResCap's near term liquidity.

"Cerberus is confident of GMAC's future and is gratified by the support the company has received from the capital markets, as well as our continuing constructive partnership with GM. GMAC has the best people in place to run this world-class global company, and we remain excited about the future," said Steven Feinberg, CEO of Cerberus Capital.

Key Elements of the Refinancing

GMAC obtained a new, globally syndicated $11.4 billion secured revolving credit facility with a three-year maturity, and renewed the one-year, syndicated commercial paper back-up facility, New Center Asset Trust (NCAT), in the amount of $10 billion.

ResCap extended for one year the maturity on substantially all of its bilateral bank facilities totaling approximately $11.6 billion and obtained a new $2.5 billion syndicated whole loan repurchase facility.

ResCap executed private exchange and cash tender offers for U.S. dollar equivalent $14.0 billion in aggregate principal amount of its outstanding debt, thereby retiring principal and extending maturities. (Details of these transactions were issued in a separate press release and can be found on .)

"This refinancing is expected to provide GMAC and ResCap with the important liquidity and financial resources to execute our business plan," said GMAC's Chief Risk Officer Sam Ramsey. "The collaboration and support of our shareholders and global banking partners was instrumental in completing this transaction."

"GMAC has a long and successful track record and Citi is pleased to assist GMAC in this refinancing in these turbulent markets. The support that GMAC has garnered in the syndicated loan and bond markets is a vote of confidence in this management team and their plans," said Chad A. Leat, chairman of Citi's Alternative Asset Group.

The syndicated loan facilities were led by JPMorgan, Citi, Bank of America and Royal Bank of Scotland. The ResCap bond exchange and cash tender offers were led by Bank of America and Citi .

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GMAC Announces Completion of Global Refinancing
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