Ally Financial announced it completed a private placement of 216,667 shares of Ally common stock for an aggregate price of approximately $1.3 billion. In addition, Ally completed the repurchase of all outstanding shares of the mandatorily convertible preferred securities held by the U.S. Department of the Treasury and eliminated the share adjustment provision.

As a result, Ally said it has repaid the U.S. Treasury $5.9 billion toward the investment that was made in the company.

“Completion of these transactions marks key milestones for Ally,” said chief executive officer Michael A. Carpenter. “With the $5.9 billion payment, Ally has returned more than 70% of the investment to the U.S. taxpayer, as well as achieved a more normalized capital structure.

The U.S. Treasury currently holds approximately 64% of the common equity in Ally, down from 74%, and the remaining 36% of the common equity is held by a diverse mix of existing and new institutional investors.