By Paul A. Harris
Portland, Ore., Feb. 8 - Ally Financial Inc. priced a massively upsized $2.25 billion of three-year senior notes (B1/B/) in two tranches on Tuesday, according to an informed source.
The deal featured a $1 billion tranche of fixed-rate notes, which priced at par to yield 4½%. The yield printed at the tight end of the 4½% to 4 5/8% price talk.
After the deal hit the market, Ally Financial added a $1.25 billion tranche of floating-rate notes, which also priced at par to yield Three-month Libor plus 320 basis points.
No price talk was given for the floating-rate tranche, sources said.
Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and RBS Securities Inc. were the joint bookrunners for the quick-to-market deal, which was upsized from $1 billion and was priced on the investment-grade desk.
Citigroup will bill and deliver.
Proceeds will be used to make loans, to purchase receivables and for general corporate purposes.
Ally Financial, formerly known as GMAC Inc., is a lender specializing in car loans for General Motors Corp. dealers. The company is based in Detroit.
| Issuer: | Ally Financial Inc.
|
| Amount: | $2.25 billion, upsized from $1 billion
|
| Maturity: | Feb. 11, 2014
|
| Security description: | Senior notes
|
| Bill and deliver: | Citigroup Global Markets Inc.
|
| Bookrunners: | Barclays Capital Inc., Citigroup, Goldman Sachs & Co., RBS Securities Inc.
|
| Trade date: | Feb. 8
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Public
|
|
|
| Fixed-rate notes
|
| Amount: | $1 billion
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 315 bps
|
| Call protection: | Non-callable
|
| Price talk: | 4½% to 4 5/8%
|
|
|
| Floating-rate notes
|
| Amount: | $1.25 billion
|
| Coupon: | Three-month Libor plus 320 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 320 bps
|
| Call protection: | Non-callable
|
| Price talk: | None
|
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