Published on 12/11/2023 in the Prospect News Investment Grade Daily.
New Issue: Ally Financial sells $750 million of 6.848% fixed-to-floaters due 2030
By Wendy Van Sickle
Columbus, Ohio, Dec. 11 – Ally Financial Inc. priced $750 million of fixed-to-floating rate notes due 2030 that start with a 6.848% coupon (Baa3/BBB-/BBB-) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at par, or at Treasuries plus 260 basis points.
The rate will convert starting Jan. 3, 2029 to SOFR plus 326 bps.
Starting June 11, 2024, the notes will be callable with a Treasuries plus 40 bps make-whole premium. The notes may be redeemed in full at par on Jan. 3, 2029 and then again beginning Dec. 4, 2029.
Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. 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: | $750 million
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| Issue: | Fixed-to-floating rate senior notes
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| Maturity: | June 13, 2030
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| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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| Co-managers: | Raymond James & Associates, Inc., U.S. Bancorp Investments, Inc., Academy Securities, Inc., AmeriVet Securities, Inc., CastleOak Securities, LP, Loop Capital Markets 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: | 6.848% initial rate; converts to SOFR plus 326 bps starting Jan. 3, 2029
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| Price: | Par
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| Yield: | 6.848%
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| Spread: | Treasuries plus 260 bps
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| Call features: | Make-whole call at Treasuries plus 40 bps starting June 11, 2024; par on Jan. 3, 2029; par beginning Dec. 4, 2029 through maturity date
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| Trade date: | Dec. 11
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| Settlement date: | Dec. 14
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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: | 02005NBU3
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