Ally starts tenders for $900 million total of notes due 2020, 2031

New York, Feb. 10 – Ally Financial Inc. started two Dutch auction cash tender offers for its notes due 2020 and notes due 2031.

The company is offering to buy up to $750 million of its $1,599,998,000 of 8% senior notes due 2020 and $1.45 billion of 7.5% senior guaranteed notes due 2020 and, in a separate offer, up to $150 million of its $782.54 million of 8% senior notes due 2031.

For the 8% senior notes due 2020, Ally will accept bids in the range of $1,195.00 to $1,225.00 per $1,000 principal amount. For the 7.5% notes the price range is $1,185.00 to $1,215.00 per $1,000 principal amount. In the offer for the 8% notes due 2031, the acceptable price range is $1,300.00 to $1,330.00 per $1,000 principal amount.

All price ranges include a $30.00 per $1,000 early participation amount that will be paid for notes tendered by 5 p.m. ET on Feb. 24.

Ally will also pay accrued interest up to but excluding the date on which the notes are purchased.

For each offer to purchase, Ally will pay the lowest single price that will enable it to accept sufficient notes to meet the tender cap amount. Bids will be pro rated if necessary.

If Ally has enough tenders by the early participation date to meet the tender cap in either of the offers, then it will not accept any tenders in that offer after the early participation date.

Any notes tendered after the early participation date will be deemed to have been tendered at the price already set. They will not be considered for calculating the tender price.

The offers end at 11:59 p.m. ET on March 10.

Ally expects the early payment date to be Feb. 25 and the final payment date to be March 11.

The offers are not subject to any minimum amount of notes being tendered. However they are subject to other conditions including the issuance of new debt.

BofA Merrill Lynch at (888 292-0070 or 980 683-3215), Goldman, Sachs & Co. (800 828-3182 or 212 902-6595) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the dealer managers.

Global Bondholder Services Corp. at (866 807-2200 or 212 430-3774) is tender agent and information agent.

Ally is a Detroit-based auto finance company.

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