General Motors Acceptance Corporation (GMAC)

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Yale University EliScholar – A Digital Platform for Scholarly Publishing at Yale YPFS Documents (Series 1) Browse by Media Type 12-16-2008 GMAC Receives Significant Participation and Extends Early Delivery Time of its Notes Exchange Offers General Motors Acceptance Corporation (GMAC) Follow this and additional works at: https://elischolar.library.yale.edu/ypfs-documents Recommended Citation General Motors Acceptance Corporation (GMAC), "GMAC Receives Significant Participation and Extends Early Delivery Time of its Notes Exchange Offers" (2008). YPFS Documents (Series 1). 8830. https://elischolar.library.yale.edu/ypfs-documents/8830 This Document is brought to you for free and open access by the Browse by Media Type at EliScholar – A Digital Platform for Scholarly Publishing at Yale. It has been accepted for inclusion in YPFS Documents (Series 1) by an authorized administrator of EliScholar – A Digital Platform for Scholarly Publishing at Yale. For more information, please contact elischolar@yale.edu. Press ReleasesGMAC Receives Significant Participation and Extends Early Delivery Time ofits Notes Exchange OffersPRNewswireNEW YORKNEW YORK (Dec. 16, 2008) -- GMAC Financial Services ("GMAC") today announced that it has receivedsignificant additional participation in its separate private exchange offers and cash tender offers to purchaseand/or exchange certain of its and its subsidiaries' (the "GMAC offers") and Residential Capital, LLC's (the"ResCap offers") outstanding notes (the "GMAC old notes" and the "ResCap old notes", respectively) andthat it is extending the early delivery time of the GMAC and ResCap offers in response to requests receivedfrom investors and their securities custodians.The new early delivery time will be 5:00 p.m., New York City time, on Friday, December 19, 2008. Alleligible holders of old notes that tender before the early delivery time, as extended, will receive the earlydelivery payment.As previously announced, GMAC and representatives of a substantial portion of the outstanding notesreached an agreement in principle with respect to the offers on Friday, December 12. While the agreement inprinciple and the interim results of the offers represent substantial progress, significant additionalparticipation will be necessary to attain the estimated overall participation that would be required to satisfythe condition for a minimum amount of regulatory capital in connection with GMAC's application to becomea bank holding company. The Federal Reserve has informed GMAC that if GMAC is unable to meet thesecapital requirements, it will not approve GMAC's application to become a bank holding company.GMAC has been informed by numerous securities custodians that additional instructions to tender old notesinto the offers remain in the process of being submitted. Based on old notes received and processed as oftoday's early payment deadline, approximately $16.6 billion in aggregate principal amount (or 58%) of theoutstanding GMAC old notes have been validly tendered in the GMAC offers and approximately $3.5 billionin aggregate principal amount (or 37%) of the outstanding ResCap old notes have been validly tendered inthe ResCap offers.Each of the GMAC and ResCap offers will expire at 11:59 p.m., New York City time, on December 26,2008, unless extended by GMAC with respect to any or all series of GMAC old notes or ResCap old notes. Inaccordance with the terms of the GMAC and ResCap offers, tendered GMAC and ResCap old notes may nolonger be withdrawn.The GMAC offers are conditioned upon, among other things, GMAC becoming a bank holding companyunder the BHC Act concurrently with the completion of the GMAC offers (which condition is for the benefitof holders and cannot be waived by GMAC). The ResCap offers are conditioned upon, among other things,the completion of the GMAC offers. Except as expressly described above, the terms and conditions of theGMAC and ResCap offers remain in effect.The GMAC offers are being made only (i) in the United States, to persons who are both "qualifiedinstitutional buyers," as that term is defined in Rule 144A under the Securities Act ("QIBs") and "qualifiedpurchasers" (as defined in the GMAC offering memorandum) or (ii) outside the United States, to personswho are not "U.S. persons," as that term is defined in Rule 902 under the Securities Act and who are alsoboth "non-U.S. qualified offerees" and "qualified purchasers" (each as defined in the GMAC offeringmemorandum). The ResCap offers are being made only to (i) in the United States, QIBs, or (ii) outside theUnited States, persons who are not "U.S. persons," and who are "non-U.S. qualified offerees."The complete terms and conditions of the GMAC and ResCap offers are set forth in the respective offeringmemoranda and other documents relating to the GMAC and the ResCap offers (as each may besupplemented from time to time) which have been distributed to eligible holders, and eligible holders arestrongly encouraged to read such documents carefully prior to making a decision with respect to the GMACand ResCap offers.Global Bondholder Services Corporation, the information agent for the offers, is available to assist investorswith questions regarding the tender and exchange process or other logistical issues, at (866) 794-2200 (U.S.Toll-free). Documents relating to the offers will only be distributed to holders of the old notes who completeand return a letter of eligibility confirming that they are within the category of eligible investors for thisprivate offer. Noteholders who desire to obtain a copy of the eligibility letter should also contact GlobalBondholder Services Corporation.Cautionary StatementThis press release is for informational purposes only and does not constitute an offer to sell or the solicitationof an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in anyjurisdiction in which such offering, solicitation or sale would be unlawful. The GMAC and ResCap offers areonly being made pursuant to the applicable offering memoranda and the related letters of transmittal thatGMAC is distributing to eligible holders of the GMAC and ResCap old notes. The GMAC and ResCapoffers are not being made to holders of the GMAC or ResCap old notes in any jurisdiction in which themaking or acceptance thereof would not be in compliance with the securities, blue sky or other laws of suchjurisdiction. In any jurisdiction in which the securities laws or blue sky laws require the GMAC or ResCapoffers to be made by a licensed broker or dealer, the GMAC and ResCap offers will be deemed to be made onbehalf of GMAC by one or more of the dealer managers, or one or more registered brokers or dealers that arelicensed under the laws of such jurisdiction.About GMAC Financial ServicesGMAC Financial Services is a global finance company operating in and servicing North America, SouthAmerica, Europe and Asia-Pacific. GMAC specializes in automotive finance, real estate finance, insurance,commercial finance and online banking. As of December 31, 2007, the organization had $248 billion inassets and serviced 15 million customers. Visit the GMAC media site at http://media.gmacfs.com/ for moreinformation.Forward-Looking StatementsThis press release contains various forward-looking statements within the meaning of applicable federalsecurities laws, including the Private Securities Litigation Reform Act of 1995, that are based upon ourcurrent expectations and assumptions concerning future events, which are subject to a number of risks anduncertainties that could cause actual results to differ materially from those anticipated.The words "expect," "anticipate," "initiative," "plan," "intend," "may," "would," "could," "should," "believe,"or the negative of any of those words or similar expressions is intended to identify forward-lookingstatements. All statements contained in or incorporated by reference into this press release, other thanstatements of historical fact, including, without limitation, statements about our plans, strategies, prospectsand expectations regarding future events and our financial performance, are forward-looking statements thatinvolve certain risks and uncertainties.While these statements represent our current judgment on what the future may hold, and we believe thesejudgments are reasonable, these statements are not guarantees of any events or financial results, and ouractual results may differ materially due to numerous important factors that are described in Item 1A of ourAnnual Report on Form 10-K for the year ended December 31, 2007, as updated by our subsequentQuarterly Reports on Form 10-Q, and our Current Reports on Form 8-K. Many of these risks, uncertaintiesand assumptions are beyond our control, and may cause our actual results and performance to differmaterially from our expectations. Factors that could cause our actual results to be materially different fromour expectations include, among others, the following: the success, or lack thereof, of the GMAC andResCap offers; the Federal Reserve changing the requirements for approval of GMAC's application tobecome a bank holding company under the BHC Act; the success, or lack thereof, of GMAC's application tobecome a bank holding company under the BHC Act; changes in the agreement reached with representativesof a substantial portion of the outstanding notes; and the success, or lack thereof, of the transactions and otherinitiatives described in this press release. Accordingly, you should not place undue reliance on the forward-looking statements contained or incorporated by reference in this press release. These forward-lookingstatements speak only as of the date on which the statements were made. We undertake no obligation toupdate publicly or otherwise revise any forward-looking statements, except where expressly required by law.Contact:Gina Proia917-369-2364Mobile: 914-714-9166gina.proia@gmacfs.com 

GMAC Receives Significant Participation and Extends Early Delivery Time of its Notes Exchange Offers

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GMAC Receives Significant Participation and Extends Early Delivery Time of its Notes Exchange Offers

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