May 22 (Reuters) - Residential Capital LLC, the loss-making mortgage unit of finance company GMAC LLC, said late Wednesday investors tendered about $9.5 billion of bonds, roughly two-thirds of the $14 billion worth of bonds it wants to restructure or buy back to avoid running short of cash.
The exchange offer is intended to help Minneapolis-based ResCap, the largest independent U.S. mortgage lender other than Countrywide Financial Corp CFC.N, ease its debt burden, following $5.3 billion of losses over the previous six quarters.
Like many mortgage lenders, ResCap has struggled with mounting customer delinquencies and falling volumes.
A group led by private equity firm Cerberus Capital Management LP [CBS.UL] in 2006 bought 51 percent of Detroit-based GMAC from General Motors Corp (GM.N), which owns the remaining 49 percent.
ResCap said $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 2015, were tendered by Wednesday’s “early” tender deadline.
It also said $853.4 million of floating-rate notes maturing on June 9 were tendered for cash.
The offer called for ResCap to exchange or buy back debt, often at a discount to face value. It would also extend maturities on some debt, giving it more time to repay investors.
The new notes would be senior to unexchanged old notes, so investors agreeing to swap would be repaid first.
ResCap said the tender and exchange offers expire June 3 and are subject to various conditions, including the lender’s obtaining $3.5 billion of secured financing.
Earlier this month, ResCap said it was in talks with GMAC to obtain a $3.5 billion secured credit line.
ResCap said earlier this month it would need to raise $600 million by end-June to avoid “negative liquidity,” even if several plans to ease its debt burden, including the $3.5 billion credit facility and $14 billion bond exchange offer, succeeded. (Reporting by Jonathan Stempel in Bangalore; Editing by Ian Geoghegan)