Published on 11/7/2022 in the Prospect News Investment Grade Daily.
New Issue: Ally Financial sells $750 million 7.1% five-year notes at 295 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Nov. 7 – Ally Financial Inc. priced an upsized $750 million of 7.1% five-year senior notes (Baa3/BBB-/BBB-) on Monday at a spread of 295 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 98.998 to yield 7.343%.
A market source noted that the offer was expected to be for $500 million of notes with talk in the 320 bps area.
Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
Ally is a financial services company based in Detroit.
| Issuer: | Ally Financial Inc.
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| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | Nov. 15, 2027
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| Bookrunners: | Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Co-managers: | Lloyds Securities Inc., Raymond James & Associates, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., Blaylock Van, LLC, Multi-Bank Securities, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Sullivan & Cromwell LLP
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| Counsel to underwriters: | Orrick, Herrington & Sutcliffe LLP
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| Coupon: | 7.1%
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| Price: | 98.998
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| Yield: | 7.343%
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| Spread: | Treasuries plus 295 bps
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| Call features: | Make-whole call on or after May 14, 2023 and before Oct. 16, 2027 at price equal to greater of par and Treasuries plus 45 bps; thereafter at par
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 15
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Price talk: | $500 million issue size with spread in 320 bps area
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| Cusip: | 02005NBR0
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