Ally announces redemption of its Series B preferred stock

Ally Financial (NYSE: ALLY) will redeem all 1,350,000 outstanding shares of its 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, on May 15, 2026, representing an aggregate liquidation preference of $1,350,000,000.

Rhea-AI Summary

Ally Financial (NYSE: ALLY) will redeem all 1,350,000 outstanding shares of its 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, on May 15, 2026, representing an aggregate liquidation preference of $1,350,000,000.

The redemption price is $1,000 per share plus any declared and unpaid dividends for the then-current dividend period; dividends will cease to accrue after the Redemption Date.

Positive

• Redemption of all 1,350,000 Series B preferred shares eliminates that perpetual preferred claim
• Aggregate liquidation preference of $1,350,000,000 will be settled on the Redemption Date
• Dividends on the Series B preferred will cease to accrue from and after May 15, 2026

Negative

• Company must pay a cash redemption equal to $1,000 per share plus accrued dividends, totaling an aggregate preference of $1,350,000,000
• Redemption requires processing through The Depositary Trust Company and coordination with transfer agent Computershare

Argus May 4 session

-0.88% close to close Open Argus

Details

News Market Reaction – ALLY

On May 4, the day this news came out, ALLY closed 0.88% below the previous close.

Data tracked by StockTitan Argus for the May 4 session.

Key Figures

Series B shares: 1,350,000 shares Dividend rate: 4.700% Redemption price: $1,000 per share +2 more

Series B shares

1,350,000 shares

Outstanding 4.700% Series B preferred to be redeemed

Dividend rate

4.700%

Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B

Redemption price

$1,000 per share

Cash paid per Series B preferred share on redemption

Liquidation preference

$1,350,000,000

Aggregate liquidation preference of redeemed Series B shares

Redemption date

May 15, 2026

Scheduled redemption date for Series B preferred stock

Historical Context

5 past events · Latest: Apr 17

5 events

1. Apr 17

   Earnings results

   24h Move

   +8.1%

   Reported first quarter 2026 financial results and hosted earnings call.

2. Apr 15

   Dividend declaration

   24h Move

   -0.7%

   Declared quarterly dividends on common and Series B and C preferred stock.

3. Apr 14

   Brand/marketing milestone

   24h Move

   +1.5%

   Achieved 50/50 sports media pledge early with increased women’s sports spend.

4. Apr 8

   Awards/recognition

   24h Move

   +3.5%

   Received multiple national awards for innovation, trust and workplace excellence.

5. Mar 12

   Earnings scheduling

   24h Move

   -0.0%

   Announced timing and access details for upcoming Q1 2026 earnings release.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-cumulative, perpetual preferred stock, liquidation preference, redemption price, +3 more

7 terms

non-cumulative financial

"4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B"

Non-cumulative describes a type of dividend or payment right where any missed distributions are not tracked or owed later; if a company skips a payment, investors do not receive that skipped amount in the future. Think of it like a one-time coupon that expires if not used: it can boost potential income when paid, but offers no catch-up protection, so investors face greater income uncertainty and should price in higher risk or lower yield expectations.

perpetual preferred stock financial

"4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B"

A perpetual preferred stock is a type of share that behaves like a forever-lasting, fixed-income investment: it pays regular dividends and has no set maturity date, yet it represents ownership rather than a loan. It ranks ahead of common stock for dividend payments and in liquidation, so investors treat it as a mix between a bond and an equity stake; its value depends largely on the issuer’s credit and prevailing interest rates.

liquidation preference financial

"an aggregate liquidation preference of $1,350,000,000."

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

redemption price financial

"redeemed for a redemption price equal to $1,000 per share"

The redemption price is the amount of money a person receives when they sell or redeem a bond or investment before it matures. It’s important because it determines how much you get back and can affect your overall profit or loss on the investment. Think of it like the price you get when returning a gift card early—it's the value you receive at that time.

redemption date financial

"on May 15, 2026 (Redemption Date), representing 100% of the issued"

The redemption date is the specific day when a debt-like security (such as a bond, preferred share, or certificate) must be repaid by the issuer and the investor receives the principal plus any final interest or dividends. It matters to investors because it tells when cash will return, shapes the effective return and price of the security, and creates reinvestment and timing considerations—like knowing when a loan is due so you can plan what to do with the returned money.

registrar and transfer agent financial

"directed to the registrar and transfer agent for the Preferred Shares, Computershare"

A registrar and transfer agent is the third-party service that keeps the official list of a company's shareholders and carries out changes to ownership — issuing or cancelling shares, recording trades, and handling name or address updates. Think of them as a combination of a secure records office and a mail carrier for stock ownership: they make sure who owns what is correct, process transfers smoothly, and handle dividend or corporate-action payments, which protects investors and preserves clear, trustworthy ownership records.

beneficial interest financial

"bank or broker through which they hold a beneficial interest in the Preferred Shares"

Beneficial interest is the right to receive the economic benefits of an asset—such as dividends, interest, or sale proceeds—without necessarily holding legal title to it. For investors this matters because it determines who actually gains from an investment or trust, much like renting an apartment where the tenant enjoys living there and paying bills while the landlord holds the deed; understanding who has the beneficial interest affects income rights, voting influence, and risk exposure.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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DETROIT, May 4, 2026 /PRNewswire/ -- Ally Financial Inc. (NYSE: ALLY) today announced that it will redeem all 1,350,000 outstanding shares (Preferred Shares) of its 4.700% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B (Series B Preferred Stock) on May 15, 2026 (Redemption Date), representing 100% of the issued and outstanding Series B Preferred Stock and an aggregate liquidation preference of $1,350,000,000.

The Preferred Shares will be redeemed for a redemption price equal to $1,000 per share of Preferred Shares plus an amount equal to any declared and unpaid dividends for the then-current dividend period up to but excluding the Redemption Date (together, the Redemption Payment). From and after the Redemption Date, all dividends will cease to accrue on the Preferred Shares.

The Preferred Shares will be redeemed on the Redemption Date in accordance with the applicable procedures of The Depositary Trust Company.

The notice of redemption and related materials were delivered today to registered holders of record of the Preferred Shares. Questions relating to, and requests for additional copies of, the notice of redemption and related materials should be directed to the registrar and transfer agent for the Preferred Shares, Computershare Trust Company, N.A., 150 Royall Street, Canton, Massachusetts 02021 or via telephone at 800-522-6645 (toll free) or 201-680-6578 (non-U.S.).

Investors in the Preferred Shares should contact the bank or broker through which they hold a beneficial interest in the Preferred Shares for information about obtaining the Redemption Payment for the Preferred Shares in which they have a beneficial interest.

About Ally Financial
Ally Financial Inc. (NYSE: ALLY) is a financial services company with the nation's largest all-digital bank and an industry-leading auto financing business, driven by a mission to "Do It Right" and be a relentless ally for customers and communities. The company serves customers with deposits and securities brokerage and investment advisory services as well as auto financing and insurance offerings. The company also includes a seasoned corporate finance business that offers capital for equity sponsors and middle-market companies. For more information, please visit www.ally.com

For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.

For further images and news on Ally, please visit http://media.ally.com.

Contacts:
Sean Leary
Ally Investor Relations
704-444-4830
sean.leary@ally.com

Peter Gilchrist
Ally Communications (Media)
704-644-6299
peter.gilchrist@ally.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/ally-announces-redemption-of-its-series-b-preferred-stock-302760797.html

SOURCE Ally Financial

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Ally (ALLY) redeeming on May 15, 2026?

Ally is redeeming all 1,350,000 outstanding shares of its Series B preferred stock on May 15, 2026. According to Ally, the redemption covers 100% of the issued Series B preferred and its aggregate $1,350,000,000 liquidation preference.

How much will holders receive for each Series B preferred share of ALLY?

Holders will receive a redemption price of $1,000 per share plus any declared and unpaid dividends for the current period. According to Ally, the payment equals $1,000 per preferred share plus eligible unpaid dividends up to but excluding May 15, 2026.

When do dividends stop accruing on ALLY Series B preferred stock?

Dividends on the Series B preferred cease to accrue from and after the Redemption Date, May 15, 2026. According to Ally, no further dividends will accrue on the redeemed preferred shares after that date.

How will Series B preferred holders get their redemption payment from ALLY?

Registered holders will receive payment via the Depositary Trust Company procedures; beneficial holders should contact their bank or broker. According to Ally, Computershare is the registrar and transfer agent for questions or additional materials.

Who should investors contact about the ALLY Series B redemption?

Investors may contact Computershare Trust Company, N.A., or their broker for redemption details and payment processing. According to Ally, Computershare’s addresses and phone numbers are provided for registered holders seeking notice copies or assistance.