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GM Prices $1.0 Billion Sale of Ally Preferred Shares


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DETROIT-- March 22, 2011: General Motors Company today announced the sale of all of its shares of Fixed Rate Perpetual Preferred Stock, Series A, of Ally Financial Inc. in a registered public offering for a total of $1.0 billion.

The shares, which represent 100 percent of the Ally Series A preferred stock outstanding, have an aggregate liquidation preference of $1 billion.

"Today, we are taking another step forward in our strategy to strengthen and simplify the company's balance sheet," said Chris Liddell, vice chairman and chief financial officer.

The transaction will result in a book gain of $0.3 billion to be recorded in the first quarter of 2011.  Following the sale, GM's investment in Ally Financial will consist of a 9.9 percent interest in Ally common stock.

The offering was underwritten by Credit Suisse, BofA Merrill Lynch, Deutsche Bank Securities and Barclays Capital.  This news release shall not constitute an offer to sell or the solicitation of an offer to buy any security.