Submitted by Ronald Tennant with Metrocities Mortgage:
Reuters (05/22/08); Stempel, Jonathan
Residential Capital LLC in Minneapolis reports that investors tendered about $9.5 billion of bonds late on May 21. The GMAC mortgage unit wants to restructure or buy back $14 billion worth of bonds to avoid a shortfall on cash. ResCap, the second-largest independent mortgage lender in the United States after Countrywide Financial, says the exchange will help it reduce its debt burden after losing $5.3 billion over the past six quarters on rising delinquencies and declining volumes. The tender involved $2.65 billion, or 80 percent of applicable notes maturing in 2008 and 2009, and $5.99 billion, or 63 percent of applicable notes maturing between 2010 and 201. ResCap adds that $853.4 million of floating-rate notes maturing on June 9 were tendered for cash.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment