GMAC Launches $4.25 Billion Debt Sale

NEW YORK (Reuters) – Auto and mortgage lender GMAC LLC on Wednesday launched a $4.25 billion guaranteed two-part note sale, its first debt issue backed by the Federal Deposit Insurance Corp, said IFR.

The sale includes $3.5 billion of fixed-rate notes due Dec. 19, 2012, which were launched at a rate equal to mid-swaps, and $750 million floating-rate notes, also due Dec. 19, 2012, which were launched at a coupon rate equal to the three-month London interbank offered rate, according to IFR, a Thomson Reuters service.

Banc of America Securities, Barclays, Deutsche Bank and JPMorgan are the joint lead managers of the sale, being issued under the government’s Temporary Liquidity Guarantee Program.

While GMAC is authorized to issue up to $7 billion in bonds under its TLGP agreement, the company opted to launch $4.25 billion of debt after receiving around $5.25 billion in demand, a buy side source said.

(Reporting by Pam Niimi; additional reporting by Tom Ryan, Editing by Chizu Nomiyama)