Ally Financial sets $750 million target size for 10-year subordinated bullet; whisper is 6¼%

By Paul A. Harris

Portland, Ore., Nov. 17 – Ally Financial Inc. plans to place a benchmark-sized offering of non-callable subordinated notes due Nov. 20, 2025 (/BB-/BB-) on Tuesday, according to market sources.

The target size of the deal is $750 million, and the notes are in the market with initial guidance of 6¼%, a trader said.

Joint bookrunner Deutsche Bank Securities Inc. will bill and deliver for the public offering, which is being priced on the investment-grade desk. Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are also joint bookrunners.

The Detroit-based automotive financial services company plans to use the proceeds to redeem its fixed-rate cumulative perpetual preferred stock, series G.

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