By Paul A. Harris
Portland, Ore., April 13 - Ally Financial priced $1.5 billion of notes (B1/B/BB), as it tapped two existing issues that were priced earlier this year, according to market sources.
The quick-to-market Wednesday transaction included a $750 million add-on to the 4½% senior notes due Feb. 11, 2014. The add-on to the fixed-rate notes priced at par. As a result the new notes also yield 4½%.
The automotive lender also priced a $750 million add-on to its Libor plus 320 basis points floating-rate notes due Feb. 11, 2014 at par, resulting in a Libor plus 320 bps yield.
The Detroit-based company, formerly GMAC, Inc., plans to use the proceeds to make loans, to purchase receivables and for general corporate purposes, which may include debt refinancing.
| Issuer: | Ally Financial
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 11, 2014
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Trade date: | April 13
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Fitch: BB
|
|
|
| Fixed-rate notes
|
| Amount: | $750 million
|
| Security description: | Add-on to 4½% senior notes due Feb. 11, 2014
|
| Coupon: | 4½%
|
| Price: | Par
|
| Yield: | 4½%
|
| Spread: | 326 bps
|
| Call protection: | Non-callable
|
| Original issue: | $1 billion priced at par on Feb. 8, 2011
|
| Total issue size: | $1.75 billion
|
|
|
| Floating-rate notes
|
| Amount: | $750 million
|
| Security description: | Add-on to Libor plus 320 bps floating-rate notes due Feb. 11, 2014
|
| Coupon: | Three-month Libor plus 320 bps
|
| Price: | Par
|
| Yield: | Three-month Libor plus 320 bps
|
| Call protection: | Non-callable
|
| Original issue: | $1.25 billion priced at par on Feb. 8, 2011
|
| Total issue size: | $2 billion
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
