GMAC, ResCap Complete $60 Billion Refinancing Deal

GMAC LLC said early Wednesday afternoon that it had successfully arranged more than $60 billion in new and refinanced credit for ailing mortgage arm Residential Capital LLC, in a move designed to push the lender through ongoing mortgage market woes. Touting the package as “one of the largest global refinancings ever completed,” more than 50 firms were involved in structuring or restructuring financing for both GMAC and ResCap, the companies said.

Among the deals involved in the financial package, GMAC said it had agreed to provide a $3.5 billion two-year credit facility to ResCap, which includes $750 million of first loss protection from General Motors Corp. and majority investor Cerberus Capital Management, L.P. — that credit facility was seen by investors as critical to managing ResCap operations going forward, according to sources that spoke with Housing Wire earlier on Wednesday.