Ally Financial Begins Repayment of U.S. Treasury Investment
Mar 2, 2011
DETROIT (March 2, 2011) -- Ally Financial Inc. (Ally) today announced that the U.S. Department of the Treasury (Treasury) will be repaid $2.7 billion from the sale of all the Trust Preferred Securities that Treasury holds in Ally. This represents the full value of Treasury's investment in these securities. The offering priced today at 8.125 percent and is expected to close on March 7, 2011. In addition to the proceeds from this transaction, Ally has paid approximately $2.2 billion in dividends on the Treasury investment to date.
"This transaction marks a key step in the company's plan to repay the U.S. taxpayer in full," said Ally Chief Executive Officer Michael A. Carpenter. "We are grateful for the taxpayer's investment in the company during the financial crisis, which enabled Ally to play an integral role in the U.S. auto recovery and ensure that thousands of automotive dealers and millions of consumers had access to credit."
Carpenter continued, "We are encouraged by our progress to date, and our ability to support the auto industry for the long term. We are committed to repaying the remaining investment to the U.S. taxpayer over time."
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 $172 billion in assets as of Dec. 31, 2010, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com.