General Electric plans exchange offer for three perpetual preferreds

By Susanna Moon

Chicago, Dec. 15 – General Electric Co. said it will allow holders to swap out three outstanding series of preferred stock.

In the exchange offer, the company is offering new GE preferred stock for its 4% series A fixed-to-floating non-cumulative perpetual preferreds, its 4.1% series B fixed-to-floating non-cumulative perpetual preferreds and its 4.2% series C fixed-to-floating non-cumulative perpetual preferreds.

GE plans to provide the terms of the exchange offers by Monday, according to a news release.

The preferreds each have a liquidation preference of $1,000 per share.

New preferreds issue

General Electric said on Dec. 1 that it would issue new preferred stock to holders of General Electric Capital Corp.’s three outstanding series of preferred stock on Dec. 3.

GE said it would issue $5.9 billion of new preferreds for the $5 billion of outstanding GE Capital preferreds as part of the previously announced reorganization of GE Capital’s businesses. The move was part of GE Capital’s plan to reduce the size of its financial services businesses through the sale of most of its assets, as previously announced.

Specifically, holders of the GE Capital preferreds as of Dec. 3 were to receive the following:

• 123.45 shares (or $123,450 liquidation preference) of GE’s 4% fixed-to-floating non-cumulative perpetual preferreds, series A, with a liquidation preference of $1,000 per share, for each share of GE Capital’s 7.125% fixed-to-floating non-cumulative perpetual preferreds, series A, with a liquidation preference of $100,000 per share;

• 118.43 shares (or $118,430 aggregate liquidation preference) of GE’s 4.1% fixed-to-floating non-cumulative perpetual preferreds, series B, with a liquidation preference of $1,000 per share, for each share of GE Capital’s 6.25% fixed-to-floating non-cumulative perpetual preferreds, series B, with a liquidation preference of $100,000 per share; and

• 109.41 shares (or $109,410 aggregate liquidation preference) of GE’s 4.2% fixed-to-floating non-cumulative perpetual preferreds, series C, with a liquidation preference of $1,000 per share, for each share of GE Capital’s 5.25% fixed-to-floating non-cumulative perpetual preferreds, series C, with a liquidation preference of $100,000 per share.

GE previously said it may redeem any of the new preferreds in whole or in part at par on any dividend payment date on or after June 15, 2022 for the new series A preferreds, Dec. 15, 2022 for the new series B preferreds or June 15, 2023 for the new series C preferreds.

GE is a Fairfield, Conn.-based industrial manufacturer.

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