GE gives results of tenders for dollar, euro, pound notes in two pools

By Cady Vishniac

Detroit, Dec. 18 – General Electric Co. (GE) plans to accept approximately $2.17 billion of tendered dollar-, euro- and sterling-denominated notes from 13 series originally issued by General Electric Capital Corp. (and assumed by GE), GE Capital European Funding Unlimited Co. (formerly GE Capital European Funding), or GE Capital UK Funding Unlimited Co. (formerly GE Capital UK Funding), according to a company press release.

The company says repurchasing the notes will reduce GE Industrial debt by approximately $9.6 billion and GE Capital debt by approximately $7 billion for a total of approximately $16.6 billion in reduced debt in 2020. Total debt has been reduced by approximately $30 billion since the beginning of 2019.

The notes were divided into two pools. The first pool covered eight series of notes, and the second pool covered five series of notes ranked by acceptance priority.

The offers for the pool 2 notes were conditioned on the aggregate total consideration, excluding interest, for all pool 2 notes tendered not exceeding $1.4 billion. The offers for the pool 1 notes were not subject to the pool 2 total purchase price condition.

The offers expired at 5 p.m. ET on Dec. 17.

Under guaranteed delivery procedures, $4,661,000 of notes were tendered. Acceptance of the notes remains subject to the valid delivery by 5 p.m. ET on Dec. 21.

Pool 1

GE has received valid tenders of the following pool 1 notes, listed with the total consideration per $1,000, €1,000 or £1,000 principal amount:

• $79,924,000 tendered, or 19.33%, of $413,441,000 outstanding 4.625% notes due Jan. 7, 2021 (Cusip: 36962G4Y7) issued by General Electric Capital at $1,002.85;

• $74,140,000 tendered, or 13.35%, of $555,499,000 outstanding 5.3% notes due Feb. 11, 2021 (Cusip: 369622SM8) issued by General Electric Capital at $1,008.12;

• €75,608,000 tendered, or 19.48%, of €388,125,000 outstanding floating-rate notes due May 17, 2021 (ISIN: XS0254356057) issued by GE Capital European at €1,002.00;

• $86,621,000, or 15.58%, of $555.97 million outstanding 4.65% notes due Oct. 17, 2021 (Cusip: 36962G5J9) issued by General Electric Capital at $1,037.50;

• €45,993,000, or 17.02%, of €270,187,000 outstanding 4.35% notes due Nov. 3, 2021 (ISIN: XS0273570241) issued by GE Capital European at €1,043.75;

• €61,219,000, or 19.54%, of €313.37 million outstanding 0.8% notes due Jan. 21, 2022 (ISIN: XS1169353254) issued by GE Capital European at €1,013.75;

• $408,913,000, or 37.67%, of $1,085,619,000 outstanding 3.15% notes due Sept. 7, 2022 (Cusip: 36962G6F6) issued by General Electric Capital at $1,048.75; and

• None of the €100 million outstanding 5.98% notes due Sept. 16, 2022 (ISIN: XS0388392259) issued by GE Capital European, which were priced at €1,106.25.

GE has accepted all tendered pool 1 notes.

Pool 2

GE has also received valid tenders for the following pool 2 notes, listed in order of acceptance priority level and with the total consideration per $1,000, €1,000 or £1,000 principal amount:

• $177,247,000, or 28.82%, of $614,975,000 outstanding floating-rate notes due March 15, 2023 (Cusip: 36966THT2) issued by General Electric Capital at $1,011.25;

• $19,614,000, or 11.4%, of $172,101,000 outstanding floating-rate notes due April 15, 2023 (Cusip: 36966TJA1) issued by General Electric Capital at $1,011.25;

• €456,903,000, or 45.69%, of €1 billion outstanding 2.625% notes due March 15, 2023 (ISIN: XS0874840845) issued by GE Capital European at €1,068.75;

• $551,093,000, or 41.83%, $1,317,584,000 outstanding 3.1% notes due Jan. 9, 2023 (Cusip: 36962G6S8) issued by General Electric Capital at $1,056.25; and

• £225,014,000, or 40.91%, of £550 million outstanding 4.125% notes due Sept. 13, 2023 (ISIN: XS0971723233) issued by GE Capital UK at £1,102.50.

GE has accepted all pool 2 notes except the fifth-priority 4.125% notes due Sept. 13, 2023. Because these notes would exceed GE’s capped offer of $1.4 billion, none of these notes will be accepted.

Conditions

No offers were conditioned on other offers or on any minimum amount of notes being tendered.

Tendered notes could be withdrawn at any time prior to 5 p.m. ET on Dec. 17.

BofA Securities, Inc. (704 999-4067), Merrill Lynch International (+44 20 7996 5420), J.P. Morgan Securities LLC (866 834-4666 or 212 834-3424) and J.P. Morgan Securities plc (+44 20 7134 2468 8969) were lead dealer managers, and CastleOak Securities, LP, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC were co-managers for the offers.

D.F. King & Co., Inc. (877 478-5040, 212 269-5550 or ge@dfking.com) was the information agent with respect to the offers for dollar notes. Lucid Issuer Services Ltd. (+44 20 7704 0880 or ge@lucid-is.com) was the information agent for the offers for euro and sterling notes.

The conglomerate is based in Boston.

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