ResCap follows GMAC in raising funds in bond market
By Anusha Shrivastava
Last Update: 5:20 PM ET May 22, 2007
(Updates with details on price.)
NEW YORK (MarketWatch) -- Residential Capital LLC, better known as ResCap, on Tuesday sold $2.25 billion of debt in the investment-grade corporate bond market.
The $1 billion, two-year, floating-rate tranche of the offering sold at 110 basis points over the London interbank offered rate and the $1.25 billion, five-year, fixed-rate tranche sold at 183 basis points over Treasurys, according to a syndicate source. Joint leads are Banc of America Securities, JP Morgan and RBS Greenwich Capital.
The deal, the first since ResCap last tapped the investment-grade market in December, is a two-part offering with protective language.