Published on 4/6/2016 in the Prospect News High Yield Daily.
New Issue: Ally Financial prices $900 million notes in two tranches
By Paul A. Harris
Portland, Ore., April 6 – Ally Financial Inc. priced $900 million of high-yield notes (BB+/BB) in two tranches on Wednesday, according to a market source.
The deal included a $600 million tranche of new 4¼% five-year senior notes, which priced at 99.442 to yield 4 3/8%. The yield printed at the tight end of the 4 3/8% to 4½% yield talk. Initial guidance was 4 5/8%.
In addition Ally priced a $300 million add-on to its 5¾% subordinated notes due Nov. 20, 2025 at 97.476 to yield 6.1%. The yield printed at the tight end of the 6.1% to 6.15% yield talk. Initial guidance was 6.3%.
BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets were the lead managers.
The Detroit-based automotive financial services company plans to use the proceeds for general corporate purposes, which may include the redemption of its fixed-rate/floating-rate perpetual preferred shares, series A.
| Issuer: | Ally Financial Inc.
|
| Face amount: | $900 million
|
| Proceeds: | $889,080,000
|
| Bookrunners: | BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., RBC Capital Markets
|
| Trade date: | April 6
|
| Settlement date: | April 11
|
| Ratings: | Standard & Poor's: BB+
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Marketing: | Quick to market
|
|
|
| Five-year senior notes
|
| Face amount: | $600 million
|
| Proceeds: | $596,652,000
|
| Maturity: | April 15, 2021
|
| Coupon: | 4¼%
|
| Price: | 99.442
|
| Yield: | 4 3/8%
|
| Price talk: | 4 3/8% to 4½%
|
|
|
| Add-on notes
|
| Face amount: | $300 million
|
| Proceeds: | $292,428,000
|
| Maturity: | Nov. 20, 2025
|
| Security description: | Add-on to the 5¾% subordinated notes due Nov. 20, 2025
|
| Coupon: | 5¾%
|
| Price: | 97.476
|
| Yield: | 6.1%
|
| Price talk: | 6.1% to 6.15%
|
| Original issue: | $750 million priced at 99.065 to yield 5 7/8% on Nov. 17, 2015
|
| Total issue size: $1.05 billion
|
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