GMAC Drives By with Upsized $1.5B Deal
March 11, 2010
Financial services giant GMAC launched a successful drive-by on the high yield market Wednesday, taking in $1.5 billion in an upsized offering.
Upsized from $1 billion, the deal—8% senior notes due 2020—priced with an OID of 98.32 to yield 8.25%, which was in line with price talk. The proceeds will use the funds to refinance debt.
Bank of America Merrill Lynch, Citi, Deutsche Bank and Morgan Stanley were the bookrunners.
Moody’s Investors Service rated the proposed notes B3, and Standard & Poor’s assigned a B rating.
GMAC has had recent success on the junk bond market, issuing $2 billion in 8.3% senior notes due 2015 via drive by just last month (LFN, Feb. 10, 2010). That deal priced with an OID of 99.19 to yield 8.5%, above price talk that was in the 8.25% area.
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