2014

Ally Financial Completes Private Placement and Repays U.S. Treasury $5.9 Billion More than 70 percent of investment returned to the U.S. taxpayer

DETROIT, Nov. 20, 2013 /PRNewswire/ -- Ally Financial Inc. (Ally) today announced that it has completed a private placement of 216,667 shares of Ally common stock for an aggregate price of approximately $1.3 billion.  In addition, Ally completed the repurchase of all outstanding shares of the Mandatorily Convertible Preferred securities held by the U.S. Department of the Treasury and eliminated the share adjustment provision.  As a result, Ally has repaid the U.S. Treasury $5.9 billion today toward the investment that was made in the company. 

"Completion of these transactions marks key milestones for Ally," said Chief Executive Officer Michael A. Carpenter.  "With the $5.9 billion payment, Ally has returned more than 70 percent of the investment to the U.S. taxpayer, as well as achieved a more normalized capital structure. 

"The strategic transformation is nearly complete and, looking ahead, we will be focused on taking steps to further improve profitability, maintain strong core auto finance and direct banking franchises and fully exit the Troubled Asset Relief Program," said Carpenter.

The U.S. Treasury currently holds approximately 64 percent of the common equity in Ally, down from 74 percent, and the remaining 36 percent of the common equity is held by a diverse mix of existing and new institutional investors.

About Ally Financial Inc.

Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.

With approximately $150.6 billion in assets as of Sept. 30, 2013, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.

Contact
Gina Proia
646-781-2692
gina.proia@ally.com 

 

SOURCE Ally Financial



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.