Citigroup, JPMorgan, Credit Suisse First Boston, Goldman Sachs, Deutsche Bank and the Royal Bank of Scotland launched $6 billion of loans last Monday to back a consortium of private equity group's 60% investment in General Motors Acceptance Corp.'s commercial mortgage subsidiary, GMAC Commercial Holding Corp. (GMACCH).
Kohlberg Kravis Roberts & Co., Five Mile Capital Partners and Goldman Sachs Capital Partners entered into an agreement in August, in which GMAC will retain a 40% equity interest in GMACCH, which has a loan servicing portfolio of about $250 billion. In a release, GMAC says the GMACCH management team will also invest in the company after the transaction is complete.
The deal is split into a $3 billion term loan and a $3 billion revolver, both priced at LIBOR plus 70 basis points. One banker said the meeting was very well attended and they were anticipating the deal to go well. The banks are anticipating investment grade ratings sometime this week. Spokesmen for KKR and Goldman Sachs Capital Partners declined comment. Spokesmen for GMAC and Five Mile could not be reached.