Ally Financial ups tender cap to $750 million in oversubscribed offers

By Susanna Moon

Chicago, Oct. 8 – Ally Financial Inc. said it lifted the cap in the cash tender offers for three series of notes by about $50 million to $750,002,000 and accepted for purchase notes tendered by the early deadline on a prorated basis.

Because the offers were oversubscribed, the company will accept no more tendered notes in the offers unless it again increases the offer caps, according to a company press release.

Investors had tendered the following amounts as of 5 p.m. ET on Oct. 7, the early tender date:

• $674,978,000, or 72.4%, of its $932.54 million of outstanding 8% senior notes due 2031;

• $1,537,003,000, or 80.9%, of its $1.9 billion of outstanding 8% senior guaranteed notes due 2020; and

• $1,489,741,000, or 85.1%, of its $1.75 billion of outstanding 7½% senior guaranteed notes due 2020.

The company now will purchase up to $150 million of the 8% notes due 2031, unchanged; $300,002,000 of the 8% notes due 2020, up from $275 million; and $300 million of the 7½% notes, up from $275 million.

The proration factor is 2.3% for the 8% notes due 2031, 19.7% for the 8% notes due 2020 and 20.2% for the 7½% notes.

The tender offers are set to end at 11:59 p.m. ET on Oct. 22. The offers began on Sept. 24 for up to $700 million of the notes.

As previously announced, the total purchase price for each $1,000 principal amount is $1,290.00 for the 8% notes due 2031, $1,207.50 for the 8% notes due 2020 and $1,192.50 for the 7½% notes, each including an early tender premium of $30.00 for notes tendered by the early deadline.

Ally will also pay accrued interest.

The tender offers are subject to a financing condition.

The Detroit-based car financing company priced $1 billion of senior notes (B1/BB/BB) in two tranches on Sept. 24.

Citigroup (800 558-3745 or call collect 212 723-6106) and Deutsche Bank Securities (866 627-0391 or call collect 212 250-2955) are the dealer managers. Global Bondholder Services Corp. (866 924-2200 or call collect 212 430-3774) is the depositary and the information agent.

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