By Aleesia Forni
Virginia Beach, May 14 – Ally Financial Inc. sold an upsized $1.4 billion issue of senior notes (/BB+/BB+) in two tranches on Thursday, according to a market source.
The company sold $1 billion of 3.6% three-year notes at 99.437 to yield 3.8%, or Treasuries plus 289.5 basis points.
Pricing was at the tight end of guidance, set 3.85%, plus or minus 5 bps.
A second tranche was $400 million 4.625% seven-year notes that priced at 98.387 to yield 4.9%, or Treasuries plus 295 bps.
The notes sold at the tight end of guidance set at 4.95%, plus or minus 5 bps.
A planned three-year floating-rate tranche was dropped prior to the deal’s launch.
Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. and Morgan Stanley & Co. LLC were the joint bookrunners.
The notes were junk-rated but were sold on investment-grade desks.
Proceeds will be used to fund tender offers for the company’s 8% senior guaranteed notes due 2020, its 7½% senior guaranteed notes due 2020, its 8% senior notes due 2031, its 5½% senior guaranteed notes due 2017 and its 6¼% senior guaranteed notes due 2017.
Ally is a Charlotte, N.C.-based automotive financial services company.
| Issuer: | Ally Financial Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.4 billion, upsized from $1.15 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC
|
| Trade date: | May 14
|
| Settlement date: | May 19
|
| Ratings: | Standard & Poor’s: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 21, 2018
|
| Coupon: | 3.6%
|
| Price: | 99.437
|
| Yield: | 3.8%
|
| Spread: | Treasuries plus 289.5 bps
|
| Price guidance: | 3.85%, plus or minus 5 bps
|
|
|
| Seven-year notes
|
| Amount: | $400 million
|
| Maturity: | May 19, 2022
|
| Coupon: | 4.625%
|
| Price: | 98.387
|
| Yield: | 4.9%
|
| Spread: | Treasuries plus 295 bps
|
| Price guidance: | 4.95%, plus or minus 5 bps
|
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