By Aleesia Forni
Virginia Beach, Feb. 10 – Ally Financial Inc. sold $1.25 billion of senior notes (/BB+/) on Tuesday in tranches due 2018 and 2022, according to an informed source.
The offering included $600 million of 3¼% notes due 2018 priced at 99.294 to yield 3½%, or Treasuries plus 246.7 basis points.
The tranche came tighter than price talk which had been set in the 3 5/8% area after tightening from earlier guidance of 3 5/8% to 3 ¾%.
The company also priced $650 million of 4 1/8% seven-year notes at 98.506 to yield 4 3/8%, or 255.6 bps over Treasuries.
The notes sold at the tight end of talk set in the 4½% area having tightened from earlier guidance set at 4 5/8% to 4¾%.
BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to fund tender offers for up to $750 million of the company’s 8% senior notes due 2020 and 7.5% senior notes due 2020 and $150 million of its 8% senior notes due 2031.
Ally is a Detroit-based auto financing company.
| Issuer: | Ally Financial
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | Feb. 10
|
| Settlement date: | Feb. 13
|
| Ratings: | Standard & Poor’s: BB+
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $600 billion
|
| Maturity: | Feb. 13, 2018
|
| Coupon: | 3¼%
|
| Price: | 99.294
|
| Yield: | 3½%
|
| Spread: | 246.7 bps
|
| Price talk: | 3 5/8% area, tightened from 3 5/8% to 3 ¾%
|
|
|
| Seven-year notes
|
| Amount: | $650 million
|
| Maturity: | Feb. 13, 2022
|
| Coupon: | 4 1/8%
|
| Price: | 98.506
|
| Yield: | 4 3/8%
|
| Spread: | 255.6 bps
|
| Price talk: | 4½% area, tightened from 4 5/8% to 4¾%
|
|
|
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