Deals
Ally Plans $5.9 Billion Buyback to Help Lender Exit U.S.
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Ally Financial Inc., the auto lender seeking to repay a U.S. bailout, is raising $1 billion in a private placement and said it will pay $5.9 billion in a plan to buy back preferred shares held by the Treasury Department.
The actions are intended to strengthen the company’s finances as it resubmits its capital plan to the Federal Reserve, Detroit-based Ally said today in a statement. The deal includes the termination of an option that would have entitled the Treasury to more common stock if the value of Ally’s shares fell below a certain threshold.