Ally Financial to redeem some trust preferreds, junior debentures

By Rebecca Melvin

Concord, N.H., June 2 – GMAC Capital Trust 1, a subsidiary trust of Ally Financial Inc., is redeeming 41.6 million units of its 8.125% fixed-rate/floating-rate trust preferred securities, series 2, or 84.467% of the outstanding securities, according to a company news release.

The trust preferreds will be redeemed at $25.00 per unit plus accrued interest payable from May 17 through the redemption date on July 2.

GMAC Capital will also redeem 1,248,000 units of its 8.125% fixed-rate/floating-rate common securities, series 2, or 84.467% of the outstanding securities.

The common securities will be redeemed on July 2 at $25.00 per unit plus accrued distributions to the redemption date.

In addition, Ally will redeem 42,848,000 units of its 8.125% fixed-rate/floating-rate junior subordinated deferrable interest debentures due 2040, or 84.467% of the outstanding securities, which are held by GMAC Capital.

The debentures will be redeemed on July 2 at par of $25.00 plus accrued dividends to the redemption date.

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

Ally is a financial services company based in Detroit. GMAC Capital Trust 1 is a special purposes vehicle for issuing securities.

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