OREANDA-NEWS. Ally Financial Inc. (NYSE: ALLY) today announced that it is calling for redemption the remaining 27,870,560 shares of its Fixed Rate/Floating Rate Perpetual Preferred Stock, Series A (Series A Preferred Stock). The shares will be redeemed at a price of $25.00 per share. The redemption date will be May 16, 2016.

The final quarterly dividend payment of approximately $14.8 million, or $0.53 per share, was declared on the Series A Preferred Stock, and is payable to shareholders of record as of May 1, 2016 (Record Date). This dividend was declared by the board of directors on April 11, 2016, and is payable on May 16, 2016.  Holders of the Series A Preferred Stock to be redeemed as of the Record Date will be entitled to receive the dividend stated above immediately prior to redemption of such shares on May 16, 2016.

"The redemption of the Series A Preferred Stock marks another step in Ally's journey to drive greater efficiency in its capital structure and represents the elimination of the company's remaining legacy preferred stock," said Ally Chief Financial Officer Christopher Halmy. "This redemption is a key step in our financial plans for 2016 and allows us to eliminate high cost preferred dividends as we continue to build shareholder value."

Ally previously repurchased approximately $325 million of its Series A Preferred Stock in May 2015.