Ally Financial Directs More Stock Dividend Payments to Treasury
The Treasury Department is receiving a hefty sum thanks to a decision announced late last week by Ally Financial’s board of directors. The board declared quarterly dividend payments for certain outstanding preferred stock.
Members revealed a quarterly dividend payment was declared on Ally’s fixed rate cumulative mandatorily convertible preferred stock, Series F-2 (Series F-2 preferred stock). The payment was approximately $134 million, or $1.125 per share, and was payable to the Treasury.
Meanwhile, Ally pointed out a separate dividend payment of approximately $62 million, or $0.5625 per share, was declared and paid on shares of Series F-2 preferred stock held by the Treasury that were converted into Ally common stock on Dec. 30. Management noted this payment included accrued but unpaid dividends related to Series F-2 preferred stock that was converted to common stock.
Including the earlier dividend payments on the Series F-2 preferred stock, Ally said it will have paid a total of approximately $1.9 billion in dividends to the Treasury since February 2009.
Furthermore, Ally also stated a quarterly dividend payment was also declared on its fixed rate cumulative perpetual preferred stock, Series G (Series G preferred stock). That payment was approximately $45 million, or $17.50 per share, and has been directed to shareholders of record as of Feb. 1.
Executives reiterated the Series G preferred stock was issued to investors in connection with the company’s private exchange and cash tender offers, which were completed in December 2008.
Ally’s board of directors declared each of these dividends last Tuesday to be payable on Feb. 15.