By Paul Deckelman
New York, June 21 - Ally Financial Inc. priced a quickly shopped, $1.5 billion two-part bond offering (B1/B+/BB-) on Thursday, high-yield syndicate sources said.
It came to market with a $1 billion offering of 4 5/8% senior guaranteed notes due 2015. Those bonds priced at 99.31 to yield 4 7/8%.
The company also did a $500 million add-on tranche to its existing 5½% senior guaranteed notes due Feb. 15, 2017. Those bonds priced at 101.5, in line with pre-deal market price talk, to yield 5.131%.
The add-on notes will have the same terms as the company's existing $1 billion of 5½% notes due 2017, will be fully fungible with them and will form a single series with them. The existing notes priced at 98.926 to yield 5¾% in a quick-to-market deal on Feb. 9.
The notes were brought to market via joint book-running managers Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
There was a lengthy list of co-managers on the deal, including Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Lloyds Securities Inc., RBC Capital Markets, LLC, RBS Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Loop Capital Markets LLC, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co., Inc.
Ally, a Detroit-based automotive and residential lender and online banking company, plans to use the proceeds from the add-on for general corporate purposes, which could include retirement of outstanding debt. Pending allocation of the proceeds, the company may invest them in short-term securities.
Ally, now majority-owned by the U.S. Treasury as a result of its receipt of billions of dollars of federal assistance during the 2008-2009 financial crisis, was formerly known as GMAC Inc. when it was the auto-loan financing arm of General Motors.
As of March 31, it had $102.3 billion principal amount of total debt outstanding, consisting of $49.7 billion of unsecured debt and $52.6 billion of secured debt.
| Issuer: | Ally Financial Inc.
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| Issue: | Senior guaranteed notes
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| Joint bookrunners: | Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., and J.P. Morgan Securities LLC
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| Co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Lloyds Securities Inc., RBC Capital Markets, LLC, RBS Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Loop Capital Markets LLC, Mischler Financial Group, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Call option: | None
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| Trade date: | June 21
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| Settlement date: | June 26
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| Ratings: | Moody's: Ba1
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| Standard & Poor's: B+
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| Fitch: BB-
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| Distribution: | SEC registered
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| Marketing: | Quick to market
|
|
|
| Tranche 1
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| Amount: | $1 billion
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| Maturity | June 26, 2015
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| Coupon: | 4 5/8%
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| Price: | 99.31
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| Yield: | 4 7/8%
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| Spread: | 446.6 bps over 0.375% Treasury due June 15, 2015
|
|
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| Tranche 2
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| Amount: | $500 million
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| Maturity | Feb. 15, 2017 (add-on to existing bonds)
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| Coupon: | 5½%
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| Price: | 101.5 plus accrued interest
|
| Yield: | 5.131%
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