Ally Financial, the former GMAC, has completed the refinancing of US$15bn in credit facilities at both the parent company and at its banking subsidiary, Ally Bank, with a syndicate of 21 lenders. The secured facilities can be used to fund retail, lease and dealer floorplan automotive assets in the US and Canada, the financier said.
“The new facilities are part of our diversified funding strategy and offer additional liquidity to support key areas of the automotive finance business,” said Ally treasurer Jeffrey Brown. “Continued progress in business performance coupled with favourable market conditions enabled us to refinance these key facilities at more favorable terms compared to prior years.”
The $15bn funding capacity is comprised of two $7.5bn facilities, one of which is available to the parent company, Ally Financial, and one of its Canadian subsidiaries, and the other which is available to Ally Bank.
Each new facility will have half the capacity maturing in two years and the other half maturing in 364 days. The two credit lines replace facilities at both Ally Financial and Ally Bank that were due to mature in the second quarter of 2011.