Published on 6/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Ally Financial sells $850 million of 6.992% fixed-to-floaters due 2029
Chicago, June 8 – Ally Financial Inc. priced $850 million of fixed-to-floating rate notes due 2029 that start with a 6.992% coupon (Baa3/BBB-/BBB-), according to an FWP filing with the Securities and Exchange Commission.
The notes priced at par, or at Treasuries plus 312.5 basis points.
The rate will convert starting June 13, 2029 to SOFR plus 326 bps.
Starting after six months the notes will be callable with a Treasuries plus 50 bps make-whole premium. The notes may be redeemed at par on the reset date and then again 30 days before the maturity date.
Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC are listed as joint bookrunners.
Proceeds will be used for general corporate purposes.
Ally is a financial services company based in Detroit.
| Issuer: | Ally Financial Inc.
|
| Amount: | $850 million
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| Issue: | Fixed-to-floating rate senior notes
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| Maturity: | June 13, 2029
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Co-managers: | Lloyds Securities Inc., U.S. Bancorp Investments, Inc., AmeriVet Securities, Inc., Drexel Hamilton, LLC, Independence Point Securities LLC, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Sullivan & Cromwell LLP
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| Counsel to underwriters: | Orrick, Herrington & Sutcliffe LLP
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| Coupon: | 6.992% initial rate; converts to SOFR plus 326 bps starting June 13, 2029
|
| Price: | Par
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| Yield: | 6.992%
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| Spread: | Treasuries plus 312.5 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps starting after six months to the reset date; par on June 13, 2029; par during 30 days before maturity date
|
| Trade date: | June 8
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| Settlement date: | June 13
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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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| Cusip: | 02005NBT6
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