GMAC has hit a potential roadblock in its drive to become a bank: existing bondholders not been enthusiastic. The lender needs a 75 percent buy-in from bondholders to exchange outstanding GMAC old notes and outstanding ResCap old notes to raise enough regulatory capital to satisfy the Fed; as of yesterday participation reached just 25 percent. So GMAC has extended the early-bird special to the end-of-day today, with the final expiration of the offer extended until 11:59 pm on December 26. The new preferred notes will carry a nine percent annual dividend rate for the first $2 billion of Tier 1 capital, and a seven percent rate for subsequent capital. GMAC needs $30 billion in total regulatory capital for Fed approval. “The Fed has informed GMAC that if we are unable to meet the capital requirement, it will not approve GMAC’s application,” a company spokesperson notes.
Meanwhile, the journey to bank-hood seems smoother for Genworth Financial. The insurer has reached a definitive agreement to acquire Maple Grove, MN-based InterBank, for an unnamed price. The deal will only go through if Genworth is approved for Capital Purchase Program money, however.
