General Motors Acceptance Corp. last week locked in the initial $10 billion portion of its three-year, $25 billion asset-backed secured funding facility from Citigroup. The facility came as a term of the April 3 sale of a 51% controlling interest in GMAC by General Motors Corp. to a group of investors led by Cerberus Capital Management - which includes Citi, Aozora Bank and a subsidiary of PNC Financial Services. The closure came while GMAC was roadshowing an auto ABS deal rumored to be between $2 billion and $3 billion.
The entire line of the facility is approved for the purchase of rated U.S. ABS - including the lender's dealer floor plan assets. And, in what is a first for GMAC, up to $4 billion of the facility can be used to purchase unrated notes backed by U.S. assets not typically securitized by GMAC in its other secured funding programs, according to the company.