Ally Financial ups tender cap in oversubscribed offer for five series

By Susanna Moon

Chicago, May 29 – Ally Financial Inc. said it will now purchase up to $875 million principal amount of five series of its notes in the cash tender offers announced May 14, up from $700 million.

All other offer terms remain unchanged, according to a company notice.

As of 5 p.m. ET on May 28, the early tender date, Ally had received tenders for the following amount of notes:

• $369,544,000 of the $1,352,537,000 of 8% senior guaranteed notes due 2020, all of which were accepted for purchase;

• $421,409,000 of the $897,461,000 of 7.5% senior guaranteed notes due 2020, all of which were accepted for purchase;

• $143,911,000 of the $596.54 million of 8% senior notes due 2031 with a sub-cap of $150 million, of which $84,047,000 were accepted for purchase using a proration factor of 58.46%;

• $118,847,000 of the 5.5% senior guaranteed notes due 2017, none of which were accepted for purchase; and

• $78,885,000 of the 6.25% senior guaranteed notes due 2017, none of which were accepted for purchase.

The first three series of notes are listed in order of priority acceptance level, and the last two series of notes each have a priority acceptance level of 4.

Pricing, other terms

As previously announced, the total purchase price for each $1,000 principal amount of notes tendered by the early deadline is as follows:

• $1,187.50 for the $1,352,537,000 of 8% senior guaranteed notes due 2020;

• $1,177.50 for the $897,461,000 of 7.5% senior guaranteed notes due 2020;

• $1,292.50 for the $596.54 million of 8% senior notes due 2031 with a sub-cap of $150 million;

• $1,047.50 for the 5.5% senior guaranteed notes due 2017; and

• $1,075.00 for the 6.25% senior guaranteed notes due 2017.

The total payout includes an early tender premium of $30 per $1,000 of notes tendered by the early deadline. Those who tender after the early deadline will receive the total amount less the early premium.

The company also will pay accrued interest to but excluding the settlement date, which is expected to be June 1 for early tendered notes and the first business day after the offer ends for remaining tenders.

The tender offers will end at 11:59 p.m. ET on June 11. Tendered notes may no longer be withdrawn as of the early deadline.

Citigroup (800 558-3745 or 212 723-6106), Deutsche Bank Securities (866 627-0391 or 212 250-2955) and Goldman Sachs & Co. (800 828-3182 or 212 902-6595) are the dealer managers. Global Bondholder Services Corp. (866 807-2200 or 212 430-3774) is the depositary and the information agent.

Ally is a Charlotte, N.C.-based automotive financial services company.

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