IRVING, Texas and DETROIT -

Exeter Finance Corp. and Ally Financial each announced financial moves recently; one to increase borrowing capacity and the other to start a cash tender offer.

Late last week, Exeter said that Exeter Funding II — a special purpose Delaware limited liability company and wholly owned subsidiary of the company — completed the renewal and extension of its warehouse funding facility. In conjunction with the renewal, the company increased available capacity to $1.65 billion, an increase from its previous facility of $575 million or 54 percent.

Exeter president and chief executive officer Mark Floyd noted the new facility has a three-year term with a final maturity date of September 2017.

“We are very pleased with the outcome of the renewal of our warehouse funding facility, and greatly appreciate the ongoing support of our commercial banking partners,” Floyd said

“This facility provides the company with added flexibility to continue to pursue strategic growth initiatives on an opportunistic basis,” he continued. “Additionally, the increase in capacity and the three-year tenor provided by this facility not only greatly enhance our liquidity position, but also reduce the potential business risk that could result from short-term disruptions in the asset backed securitization market.”

Exeter mentioned Citi acted as structuring agent and administrative agent on the transaction. In addition to Citi, the company indicated Wells Fargo, Goldman Sachs, Deutsche Bank and Barclays are lenders in the facility.

Ally Financial Announces Cash Tender Offer

In other industry news, Ally announced on Wednesday that it has commenced cash tender offers to purchase up to $700.0 million aggregate principal amount of its following notes:

— 8.000 percent Senior Notes due 2031

— 8.000 percent Senior Guaranteed Notes due 2020

— 7.500 percent Senior Guaranteed Notes due 2020

Ally indicated the terms and conditions of the tender offers are described in an offer to purchase, dated Sept. 24 and a related letter of transmittal.

“Ally reserves the right, but is under no obligation, to increase the aggregate maximum tender amount or the maximum tender amount with respect to any series of notes without extending withdrawal rights except as required by law,” officials said. “The amounts of each series of notes to be purchased may be prorated as set forth in the statement.”

      Dollars per
$1,000 Principal
Amount
of
Notes
 
   
Title of Notes CUSIP
Number 
Aggregate
Principal
Amount
Outstanding
Tender
Offer

(1) 
Early
Tender
Premium
(1) 
Total
(1)(2)  
Maximum
Tender Amount
 8.000% Senior Notes due 2031  370425RZ5   $932.540M  $1,260.00  $30.00  $1,290.00   $150M
 8.000% Senior Guaranteed Notes due 2020  02005NAE0
 36186RAA8
 U36195AA0
 $1,9B  $1,177.50  $30.00  $1,207.50  $275M
 7.500% Senior Guaranteed Notes due 2020  02005NAJ9  $1.75B  $1,162.50  $30.00  $1,192.50  $275M

(1) Per $1,000 principal amount of Notes tendered and accepted for purchase.

(2) Includes the Early Tender Premium.

Ally pointed out the tender offers will each expire at 11:59 p.m. EST on Oct. 22, unless extended or earlier terminated by the company.

Subject to the terms and conditions of the tender offers, Ally explained the consideration for each $1,000 principal amount of notes validly tendered (and not validly withdrawn) and accepted for purchase pursuant to the tender offers will be the tender offer consideration for such series of notes set forth in the table above with respect to each series of notes and the tender offer consideration.

Officials said holders of notes that are validly tendered (and not validly withdrawn) at or prior to 5 p.m. EST on Oct. 7 (such date and time, as it may be extended) and accepted for purchase pursuant to the tender offers will receive the applicable tender offer consideration for such series, plus the applicable early tender premium for such series of notes set forth in the table above.

“Holders of notes tendering their notes after the early tender date will not be eligible to receive the early tender premium,” Ally said.

The company added all notes validly tendered and accepted for purchase pursuant to the tender offers will receive the applicable consideration set forth in the table above, plus accrued and unpaid interest on such notes from the last interest payment date with respect to those notes to, but not including, the applicable settlement date (as such term is defined in the statement).

“The consummation of the tender offers is not conditioned upon any minimum amount of notes being tendered,” Ally said. “However, the tender offers are subject to, and conditioned upon, the satisfaction or waiver of certain conditions described in the statement, including, among others, Ally having raised net proceeds through one or more issuances of debt in the public or private capital markets, on terms reasonably satisfactory to the company, sufficient to purchase all notes validly tendered (and not validly withdrawn) and accepted for purchase by the company and to pay all fees and expenses in connection with the tender offers.”

Citigroup and Deutsche Bank Securities are the dealer managers in the tender offers. Global Bondholder Services Corp. has been retained to serve as both the depositary and the information agent for the tender offers.

Persons with questions regarding the tender offers should contact Citigroup at (800) 558-3745 or (212) 723-6106 or Deutsche Bank Securities at (866) 627-0391 or (212) 250-2955. Requests for copies of the statement, related letter of transmittal and other related materials should be directed to Global Bondholder Services at (866) 924-2200 or (212) 430-3774.

“None of Ally, its board of directors, the dealer managers, the depositary, the information agent or the trustee with respect to the notes or any of Ally's or their respective affiliates, makes any recommendation as to whether holders of the notes should tender any notes in response to the tender offers,” officials said. “The tender offers are made only by the statement and the accompanying letter of transmittal.

“The tender offers are not being made to holders of notes in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction,” they continued.

“In any jurisdiction in which the tender offers are required to be made by a licensed broker or dealer, the tender offers will be deemed to be made on behalf of Ally by the dealer managers, or one or more registered brokers or dealers that are licensed under the laws of such jurisdiction,” the company went on to say.