Ally Financial to Redeem $1.35B of 4.700% Series B Preferred Stock
Ally Financial will redeem all 1.35 million outstanding shares of its 4.700% Series B perpetual preferred stock on May 15, 2026, representing a $1.35 billion aggregate liquidation preference. The redemption price will be $1,000 per share plus accrued dividends through May 14, and dividend accruals will cease thereafter.
1. Redemption Details
Ally Financial will redeem on May 15, 2026 all 1,350,000 shares of its 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, at a redemption price of $1,000 per share plus any declared and unpaid dividends through May 14, 2026.
2. Financial Impact
This redemption removes a $1.35 billion preferred stock liability and halts dividend accruals, reducing annual preferred dividend expense by approximately $63.45 million and modestly improving common equity returns and leverage ratios.