Ally Financial offers to exchange $2 billion in bonds

by LJ Miehe on October 21, 2010

(AP) Auto financing company Ally Financial  on Thursday announced an offer to exchange $2 billion worth of its private unsecured bonds.

The terms of the original private issuance in February required the company to offer to exchange the notes for newly issued bonds registered with the Securities and Exchange Commission. The outstanding 8.3 percent senior guaranteed notes are due in 2015.

The new bonds have the same terms and conditions as the old bonds. Registered securities do not have the resale restrictions that the privately issued securities were subject to, however.

The exchange offer expires at midnight on Nov. 18.

Ally Financial, formerly GMAC Inc., also offers mortgage operations and commercial finance. Its subsidiary, Ally Bank, offers online retail banking products.

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