Ally Financial unit to redeem most of three fixed/floating-rate notes

By Rebecca Melvin

Concord, N.H., April 22 – Ally Financial Inc. announced its subsidiary GMAC Capital Trust I will redeem most of three series of fixed-rate/floating-rate securities on May 24, according to a company release.

The trust is redeeming 56,000,000 units of its 8.125% fixed rate/floating rate trust preferred securities, series 2 (Cusip:. 361860208), or about 53% of the outstanding TRUPS at par of $25.00 per unit, plus accrued interest payable from May 15 through the redemption date.

The interest will be based on an annual rate equal to three-month Libor plus 578.5 basis points.

It is also redeeming .,68 million units of its 8.125% fixed rate/floating rate common securities, series 2, or about 53% of the outstanding common securities at par price of $25.00 per unit, plus all accrued and unpaid distributions through the redemption date.

Ally is also redeeming 57.68 million units of its 8.125% fixed rate/floating rate junior subordinated deferrable interest debentures due 2040, or about 53% of the outstanding debentures held by the trust at par of $25.00 per unit, plus all accrued and unpaid dividends through the redemption date.

The trust's redemption of the called TRUPS and common securities will occur concurrently with Ally's redemption of the called debentures, all of which are held by the trust.

The proceeds from the redemption of the called debentures will be applied to redeem the called TRUPS and common securities.

Ally is a financial services company based in Detroit.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.