DETROIT, Oct. 21 /PRNewswire/ -- Ally Financial Inc. ("Ally") today announced the commencement of an exchange offer for its outstanding 8.3 percent Senior Guaranteed Notes due 2015 (the "old notes"). Ally originally issued an aggregate principal amount of $2 billion of the old notes in a private offering on Feb. 12, 2010.
In connection with the sale of the old notes, Ally entered into a registration rights agreement in which it undertook to offer to exchange the old notes for new notes (the "new notes") registered under the Securities Act of 1933, as amended (the "Securities Act"). Pursuant to an effective registration statement on Form S-4, filed with the Securities and Exchange Commission (the "SEC"), holders of the old notes will be 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 will not bear any legend restricting transfer. The registration rights and additional interest provisions pertaining to old note holders will also not apply to the new notes.
The exchange offer will expire at 12:00 midnight, New York City time, on Nov. 18, 2010, unless extended or terminated. Tenders of old notes must be made before the exchange offer expires and may be withdrawn any time prior to expiration of the exchange offer.
The terms of the exchange offer are set forth in a prospectus dated Oct. 21, 2010. Documents related to the offer, including the prospectus and the associated letter of transmittal, have been filed with the SEC, and may be obtained from the information agent, Global Bondholder Services Corporation, 65 Broadway – Suite 404, New York, New York 10006, telephone: (866) 794-2200.
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 is being made only pursuant to the exchange offer documents, which have been filed with the SEC, and include the prospectus and letter of transmittal that are being 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 $176 billion in assets as of June 30, 2010, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com.
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 Financial Inc.'s exchange offer and are subject to risks and uncertainties that could cause actual results to differ materially from Ally Financial Inc.'s current expectations. Factors that could cause or contribute to such differences include, but are not limited to: the risk that the company does not complete the exchange offer on the terms currently described in the prospectus or at all, as a result of a change in market conditions for corporate debt securities generally and for the securities of financial services companies and for Ally Financial Inc. in particular, or the unwillingness of note holders to exchange their old notes for new notes having the terms currently proposed. Further discussion of these and other potential risk factors may be found in Ally Financial Inc.'s public filings with the SEC (www.sec.gov), including its Form 10-K for the fiscal year ended Dec. 31, 2009 and its Registration Statement on Form S-4, as filed on Oct. 13, 2010.
SOURCE Ally Financial Inc.