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GMAC Capital Trust: Ally Financial Announces Redemption Of All Remaining Series A Preferred Stock

The following excerpt is from the company's SEC filing.

Declares final quarterly dividend payment for the Series A Preferred Stock

Ally Financial Inc. (NYSE: ALLY) today announced that it is calling for redemption the remaining 27,870,560 shares of its Fixed Rate/Floating Rate Perpetual Preferred Stock, Series A (Series A Preferred Stock). The shares will be redeemed at a price of $25.00 per share. The redemption date will be May 16, 2016.

The final quarterly dividend payment of approximately $14.8 million, or $0.53 per share, was declared on the Series A Preferred Stock, and is payable to shareholders of record as of May 1, 2016 (Record Date). This dividend was declared by the board of directors on April 11, 2016, and is payable on May 16, 2016. Holders of the Series A Preferred Stock to be redeemed as of the Record Date will be entitled to receive the dividend stated above immediately prior to redemption of such shares on May 16, 2016.

The redemption of the Series A Preferred Stock marks another step in Allys journey to drive greater efficiency in its capital structure and represents the elimination of the companys remaining legacy preferred stock, said Ally Chief Financial Officer Christopher Halmy. This redemption is a key step in our financial plans for 2016 and allows us to eliminate high cost preferred dividends as we continue to build shareholder value.

Ally previously repurchased approximately $325 million of its Series A Preferred Stock in May 2015.

The notice of redemption and related materials were delivered today to registered holders of record of the Series A Preferred Stock. Questions relating to and requests for additional copies of the notice of redemption and related materials should be directed to the redemption and paying agent, Computershare Trust Company, N.A., c/o Computershare Inc., Corporate Actions, 250 Royall Street...