GMAC LLC plans to sell its first notes guaranteed by the Federal Deposit Insurance Corp., according to a person familiar with the offering.
Bank of America Corp., Barclays PLC, Deutsche Bank AG and JPMorgan Chase & Co. are underwriting the transaction, said the person, who declined to be identified because the terms are not set. The securities will mature in December 2012.
GMAC's ability to use the FDIC program is "absolutely critical" to the firm's survival, said Pete Hastings, a fixed-income analyst at Regions Financial Corp.'s Morgan Keegan & Co. Banks have issued $240 billion of debt under the Temporary Liquidity Guarantee Program since Nov. 25, according to data compiled by Bloomberg.
GMAC was cleared to sell $7.4 billion in government-backed debt on May 21, as part of an effort to bolster its ability to finance car buyers and sellers. The company was permitted to convert to a bank holding company in December and got access the Treasury's industry rescue program.
The lender has since received $13.5 billion in government funds to provide funding for customers and dealers of General Motors Corp. and Chrysler LLC. GMAC spokeswoman Gina Proia declined to comment.
