New Issue: Ally Financial prices $1 billion 2¾% three-year notes to yield 2 7/8%

By Paul A. Harris

Portland, Ore., Dec. 2 - Ally Financial Inc. priced a $1 billion issue of 2¾% three-year non-callable senior guaranteed notes (B1/B+/) at 99.622 to yield 2 7/8% on Monday, according to market sources.

The yield printed 12.5 basis points inside the tight end of the 3% to 3 1/8% yield talk.

Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the joint bookrunners for the public offering, which was transacted on the investment-grade desk.

The Detroit-based automotive lender plans to use the proceeds for general corporate purposes and the redemption of outstanding debt securities.

Issuer:	Ally Financial Inc.
Amount:	$1 billion
Maturity:	Jan. 30, 2017
Securities:	Senior guaranteed notes
Bookrunners:	Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
Co-managers:	Credit Agricole Securities (USA) Inc., Lloyds Securities Inc., Scotia Capital (USA) Inc., SG CIB, U.S. Bancorp Investments Inc., Drexel Hamilton LLC, MFR Securities Inc., Samuel A. Ramirez & Co. Inc., Toussaint Capital Partners LLC
Coupon:	2¾%
Price:	99.622
Yield:	2 7/8%
Spread:	231.6 bps
Call protection:	Non-callable
Trade date:	Dec. 2
Settlement date:	Dec. 5
Ratings:	Moody's: B1
	Standard & Poor's: B+
Distribution:	SEC registered
Price talk:	3% to 3 1/8%
Marketing:	Quick to market

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