Ally Financial, formerly known as GMAC, plans to sell as much as $1 billion in junk bonds in a benchmark deal, according to a filing with the Securities and Exchange Commission. Sources indicate the bonds could price Monday.

The company plans to issue $1 billion in senior notes due 2020, Price talk on the bonds indicates a 7.625% yield, according to Standard & Poor’s Leveraged Commentary and Data.

Bank of America Merrill Lynch, Citigroup, Goldman Sachs and RBS are the underwriters.

GMAC changed its name to Ally Financial in July. The financing company has had success on the junk bond market so far this year. It priced $1.5 billion in an upsized drive-by offering in March (LFN, March 11, 2010) just a few months after issuing $2 billion in junk bonds in January.

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