Ally Financial Inc. announced the renewal of $12.5 billion in credit facilities through a syndicate of 18 lenders, to be used by its parent company, Ally Financial, and its banking subsidiary, Ally Bank, the lender announced yesterday.
The secured facilities represent an increase of $1 billion from the prior lines of credit, and can be used to fund consumer and commercial automotive assets, according to a company press release. Under the renewal of the two facilities, the additional $1 billion will be available to Ally Bank – upping the total of available lines of credit to $4.5 billion, while $8 billion is available to the parent company’s facility – unchanged from the previous facility, according to company filings with the Securities and Exchange Commission.
Ally last renewed its facilities in March 2014, which upped available funds to $11.5 billion, from $11 billion.
“A diversified funding strategy remains a key objective to effectively support the needs of Ally’s auto finance business,” Ally Corporate Treasurer Bradley Brown said in the release. “These facilities were renewed with improved economic and structural terms that accommodate the continued evolution and growth of our auto finance business.”
The parent company’s facility was previously set to mature in March 2016, while Ally Bank’s facility was set to mature in June of this year, through the renewal, both will now mature in March 2017, barring another renewal.