The government-owned Ally Financial has agreed to sell $1 billion worth of senior notes to a group of underwriters including Barclays Capital, Citigroup, Goldman Sachs and Morgan Stanley.
The notes, due in 2017, pay a yield of 5.5%, according to a recent filing with the Securities and Exchange Commission.
The debt is guaranteed by Ally US and affiliates. The U.S. Treasury controls just over 70% of Ally, a bank holding company that also owns Residential Capital Corp. (ResCap)/GMAC Mortgage, the nation's fifth largest residential lender and servicer.
Cerberus Capital, a hedge fund, has an 8.7% stake in Ally with a General Motors trust controlling 9.9%. The balance is held by other investors.
Ally would like to go public and is considering a plan to place all of its troubled assets in a “bad bank” and sell that unit to investors, according to industry officials. Ally has declined to comment on reports about the plan or the possibility that it might sell ResCap/GMAC.