View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
March 23, 2011updated 08 Apr 2021 8:07am

US: GM selling $1bn of Ally Financial stock

General Motors Company said it is selling all of its shares of Series A fixed rate perpetual preferred stock in Ally Financial [nee GMAC] in a registered public offering for US$1bin.

General Motors Company said it is selling all of its shares of Series A fixed rate perpetual preferred stock in Ally Financial [nee GMAC ] in a registered public offering for US$1bin.

The shares, 100% of the Ally Series A preferred stock outstanding, have an aggregate liquidation preference of $1bn.

“Today, we are taking another step forward in our strategy to strengthen and simplify the company’s balance sheet,” said Chris Liddell, GM’s soon-to-depart chief financial officer in a statement.

GM said the deal will result in a book gain of $0.3bn it will record in this first quarter of 2011.  Following the sale, GM’s investment in Ally Financial will consist of a 9.9% interest in Ally common stock.

The offering was underwritten by Credit Suisse , Bofa Merrill Lynch , Deutsche Bank Securities and Barclays Capital .

Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Monday. The industry's most comprehensive news and information delivered every quarter.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Auto