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GMAC Capital Trust: Ally Financial Announces Redemption Of All Remaining Series G Preferred Shares

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

Ally Financial Inc. (NYSE: ALLY) today announced that it received approval from the Federal Reserve to redeem 1,288,301 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series G (Series G Preferred Shares). The shares will be redeemed at a price of $1,000 per share plus all accrued and unpaid dividends through the redemption date, for a total of $1,005.64 per share. The redemption date will be Dec. 14, 2015.

The elimination of all remaining Series G Preferred Shares will decrease our preferred dividend burden and allow the company to optimize future capital man agement to drive shareholder value, said Chief Executive Officer Jeffrey Brown. Addressing this remaining legacy security will remove the restriction the company had on offering common equity distributions and position Ally to meet its objective of initiating a dividend and share repurchase program in 2016.

The terms of the Series G Preferred Shares, which were developed during the financial crisis, prohibited the company from offering a dividend on common equity shares. In April 2015, Ally redeemed approximately $1.3 billion of its Series G Preferred Shares.

The notice of redemption and related materials were delivered today to registered holders of record of the Series G Preferred Shares. Questions relating to and requests for additional copies of the notice of redemption and related materials should be directed to the redemption agent, Computershare Trust Company, N.A., c/o Computershare Inc., Corporate Actions, 250 Royall Street, Canton, MA 02021, Attention: Reorganization Department at 855-396-2084.

About Ally Financial

Ally Financial Inc. (NYSE: ALLY) is a leading automotive financial services company powered by a top direct banking franchise. Allys automotive...