Press Release
GM Acceptance Offers Fixed-Rate Investment Notes
09/27/96
GMAC Introduces All-New SmartNotes(SM) for Investors DETROIT, Sept. 25 -- General Motors Acceptance Corporation (GMAC) will begin offering on September 27, 1996, $500 million in SmartNotes, which is a new, competitive, fixed-rate, medium-term investment vehicle designed specifically for individual investors. GMAC pioneered issuing medium-term notes to institutional investors in 1972, and now has more than $20 billion outstanding with institutional investors. "We are pleased to offer SmartNotes to individual investors," said Eric A. Feldstein, GMAC executive vice president and chief financial officer. "SmartNotes are an important addition to our investment offerings, and they provide many advantages over bonds and other term investments," he said. Because SmartNotes were created for the individual investor, GMAC offers several features to simplify and streamline the investment process. SmartNotes are available with a low minimum investment of $1,000, are sold at par, and the coupon reflects the yield prior to purchase. Because people make investment decisions over the course of the year, new SmartNotes rates are announced every Friday and will usually remain available until the following Thursday. "Investors will like the variety of options offered by SmartNotes, which allow individuals to design their own portfolio structures," Feldstein said. "GMAC will offer various interest payment structures with maturities from nine months to 30 years," he said. SmartNotes are offered by GMAC, which is one of the largest financial institutions in the world. GMAC's earnings have averaged more than $1 billion annually over the last 11 years, and it has more than $100 billion in owned assets and serviced automotive receivables. GMAC SmartNotes are offered only by prospectus through brokerage companies, including The Chicago Corporation, which is the lead agent; A.G. Edwards and Sons Inc.; Edward D. Jones and Company; Prudential Securities Inc.; and Smith Barney Inc. Investors interested in SmartNotes should contact a licensed investment broker for more information and a prospectus. Investors can also find out more about SmartNotes in GMAC's SMARTTOWN(SM) web site (http://www.gmacfs.com/invest) or The Chicago Corporation's Direct Access Notes(SM) web site (http://www.dircet-notes.com/gmac). GMAC Financial Services, a wholly owned subsidiary of General Motors , is one of the world's largest financial services companies. Since its founding in 1919, GMAC has extended $850 billion in credit to help finance more than 137 million cars and trucks in 32 countries around the world. GMAC SmartNotes(SM) Fact Sheet Description * Sold at par by prospectus only * A medium-term note designed for individual investors * Low minimum investment of $1,000 * Varying maturities - 9 months to 30 years from date of issue * Rated A3 by Moody's and A- by Standard and Poor's * Depository Trust Company book-entry form -- no physical certificates * $500 million public offering Features * Priced weekly (every Friday) at varying rates and maturities * Interest payments are offered annually, semi-annually, quarterly or monthly and are paid at a fixed rate * SmartNotes offer a good way to diversify any portfolio of fixed-income securities * Survivor's option, which allows a purchaser's estate the right to redeem a note at par upon his or her death * Sold through an extensive broker/dealer group Advantages * Because SmartNotes are sold at par and are non-callable, individual investors will know exactly what they are receiving. * Offered at a variety of coupons, maturities and payment periods to accommodate an investor's needs. * Allow individuals time to weigh the value of their investment decisions, because SmartNotes are offered on Friday and, in most cases, are generally available until the following Thursday. * Available over an extended period of time. * SmartNotes offer a survivor's option that gives the owner's estate the right to redeem the note at par upon the owner's death. SmartNotes are offered only by prospectus. For more information about SmartNotes, contact a licensed investment broker, call 1-800-869-2198, or visit http://www.gmacfs.com/invest or http://www.direct-notes.com/gmac on the Internet.
