GM Announces $1B Public Offering for Ally Preferred Shares

General Motors revealed on Tuesday evening that it will be selling the entirety of shares of Fixed Rate Perpetual Preferred Stock, Series A in Ally Financial.

These will be sold in a public offering and have been priced at $1 billion.

The shares compose the entire lot of Ally Series A preferred stock outstanding, GM noted. The aggregate liquidation preference is $1 billion.

GM said that that the automaker will receive a $300,000 book gain for the first quarter via the sale. After these shares have been sold, GM’s will have 9.9 percent interest in Ally common stock.

Credit Suisse, BofA Merrill Lynch, Deutsche Bank Securities and Barclays Capital were the underwriters for the offering.

“Today, we are taking another step forward in our strategy to strengthen and simplify the company’s balance sheet,” stated vice chairman and chief financial officer Chris Liddell on Tuesday.