Ally Financial Announces Expiration and Results of Registered Exchange Offer

Dec 08, 2010, 15:00 ET from Ally Financial

DETROIT, Dec. 8, 2010 /PRNewswire/ -- Ally Financial Inc. ("Ally") today announced the expiration and results of its offer to exchange (the "exchange offer") its outstanding 8.000 percent Senior Guaranteed Notes due 2020 (the "old notes") that were issued on March 15, 2010, and March 25, 2010, in private offerings for new 8.000 percent Senior Guaranteed Notes due 2020 (the "new notes") that have been registered under the Securities Act of 1933, as amended (the "Securities Act").

The exchange offer expired at 8:00 a.m., New York City time, on Wednesday, Dec. 8, 2010. Global Bondholder Services Corporation, the exchange agent for the exchange offer, has advised that an aggregate principal amount of approximately $1.899 billion of the old notes were validly tendered and not validly withdrawn prior to the expiration of the exchange offer. This represents approximately 99.95 percent of the aggregate principal amount of old notes outstanding upon commencement of the exchange offer.  All of the old notes validly tendered and not validly withdrawn have been accepted for exchange pursuant to the terms of the exchange offer.

In connection with the sale of the old notes, Ally entered into registration rights agreements in which it undertook to offer to exchange the old notes for new notes registered under the Securities Act.  Pursuant to an effective registration statement on Form S-4, filed with the Securities and Exchange Commission ("SEC"), holders were able to exchange the old notes for new notes in an equal principal amount. The new notes are substantially identical to the old notes, except that the new notes have been registered under the Securities Act and do not bear any legend restricting transfer. The registration rights and additional interest provisions pertaining to old note holders do not apply to the new notes. Ally expects that settlement of the Exchange Offer will occur on or about Dec. 9, 2010.

This announcement is neither an offer to buy nor a solicitation of an offer to sell any of the company's securities. The exchange offer was made only pursuant to the exchange offer documents, which have been filed with the SEC, and include the prospectus and letter of transmittal that were distributed to holders of the old notes.

About Ally Financial Inc.

Ally Financial Inc. (formerly GMAC Inc.) is one of the world's largest automotive financial services companies.  The company offers a full suite of automotive financing products and services in key markets around the world.  Ally's other business units include mortgage operations and commercial finance, and the company's subsidiary, Ally Bank, offers online retail banking products.  With more than $173 billion in assets as of Sept. 30, 2010, Ally operates as a bank holding company.  For more information, visit the Ally media site at http://media.ally.com.

Forward-Looking Statements

This press release may contain forward-looking statements (as such term is defined in the Private Securities Reform Act of 1995). These forward-looking statements include statements about Ally's exchange offer and are subject to risks and uncertainties that could cause actual results to differ materially from Ally's current expectations.  Further discussion of potential risk factors may be found in Ally's public filings with the SEC (www.sec.gov), including its Form 10-K for the fiscal year ended Dec. 31, 2009, its Registration Statement on Form S-4, as filed on Nov. 1, 2010, and its Prospectus dated Nov. 8, 2010, as filed with the SEC on Nov. 8, 2010, pursuant to Rule 424(b)(3) under the Securities Act of 1933, as amended.

Contacts: 

Jim Olecki

212-884-7955

james.olecki@ally.com


Chris McNamee

212-884-7935

christopher.mcnamee@ally.com



SOURCE Ally Financial



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