Ally Financial announces renewal of $11 billion in credit facilities
DETROIT--Ally Financial Inc. has completed the renewal of $11 billion in credit facilities at both the parent company and at its banking subsidiary, Ally Bank , with a syndicate of 19 lenders. The secured facilities can be used to fund retail, lease and dealer floorplan automotive assets in the U.S.
"Supporting continued growth of our leading U.S. auto finance franchise through diversified funding sources remains an important priority at Ally, and renewal of these facilities is a key component of that strategy," said Ally's Corporate Treasurer Chris Halmy . "Interest from lenders in renewing these facilities was very healthy and an important demonstration of continued confidence in Ally's financial strength. Moreover, we continue to drive efficiencies and lower cost of funds through improved terms and reduced fees on these renewed facilities.
"Ally Bank 's robust growth in deposits has enabled less reliance on the capital markets, and further strengthened our financial profile and funding options," stated Halmy. "As a direct result of this continued deposit growth, the total facility size was reduced by $4 billion."
The $11 billion funding capacity is comprised of two facilities: an $8.5 billion facility which is available to the parent company, Ally Financial, and maturing in March 2015; and a second $2.5 billion facility available to Ally Bank which matures in June 2014. The two credit lines renew the credit facilities that were initially renewed by Ally in March 2011.
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank , the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $182.4 billion in assets as of Dec. 31, 2012, Ally operates as a bank holding company.