By Paul A. Harris
Portland, Ore., Nov. 17 – Ally Financial Inc. priced a $750 million issue of 5¾% non-callable 10-year subordinated holdco notes (/BB-/BB) at 99.065 to yield 5 7/8% on Tuesday, according to a market source.
The yield printed at the tight end of the 5 7/8% to 6% yield talk and inside of initial guidance in the 6¼% area, sources said.
The deal size came in at the targeted amount.
Joint bookrunner Deutsche Bank Securities Inc. will bill and deliver for the public offering, which priced on the investment-grade desk. Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were also joint bookrunners.
The Detroit-based automotive financial services company plans to use the proceeds to redeem its fixed-rate cumulative perpetual preferred stock, series G.
| Issuer: | Ally Financial Inc.
|
| Amount: | $750 million
|
| Proceeds: | $742,987,500
|
| Maturity: | Nov. 20, 2025
|
| Securities: | Subordinated holdco notes
|
| Bookrunners: | Deutsche Bank Securities Inc. (bill and deliver), BofA Merrill Lynch, Barclays, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Coupon: | 5¾%
|
| Price: | 99.065
|
| Yield: | 5 7/8%
|
| Spread: | 361 bps
|
| Call protection: | Par call 30 days prior to maturity, otherwise non-callable
|
| Trade date: | Nov. 17
|
| Settlement date: | Nov. 20
|
| Ratings: | Standard & Poor's: BB-
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5 7/8% to 6%
|
| Marketing: | Quick to market
|
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