By Susanna Moon
Chicago, Jan. 20 – General Electric Co. said holders had tendered for exchange $5,694,493,000 or 5,694,493 shares, equivalent to 95.8%, of three series of preferreds.
In exchange, GE will issue $5,694,493,000 or 5,694,493 shares of its new preferred stock on Jan. 20, according to a company press release.
The exchange offer ended at midnight ET on Jan. 19. The offer began Dec. 18.
All the preferreds have a liquidation preference of $1,000 per share.
The company was offering to issue up to 5,944,250 shares of its new 5% fixed-to-floating noncumulative perpetual preferred stock, series D, in exchange for three series of preferreds.
The breakdown for the preferreds tendered for exchange is as follows:
• 2,686,760 shares, or 96.7%, of the 2,777,625 shares of 4% series A fixed-to-floating noncumulative perpetual preferreds;
• 2,008,376 shares, or 96.9%, of the 2,072,525 shares of 4.1% series B fixed-to-floating noncumulative perpetual preferreds; and
• 999,357 shares, 91.3%, of the 1,094,100 shares of 4.2% series C fixed-to-floating noncumulative perpetual preferreds.
The company said it accepted all of the tendered preferreds for exchange.
As previously announced, holders will receive one new preferred for each preferred exchanged.
In addition, the company will pay each holder of the series A preferreds a cash payment of $10 per share tendered and each holder of the series B preferreds a cash payment of $5 per share tendered.
New preferreds
Holders who tender will receive a cash payment equivalent to a dividend accruing at 5% per year from Dec. 15 to the completion of the exchange offer on Jan. 20.
Dividends on the new preferreds, as in the case of those being exchanged, will not be cumulative and will not be mandatory.
For the new perpetual preferreds, dividends will begin to float on Jan. 21, 2021 at Libor plus a spread of 333 basis points.
The new preferreds are callable in whole or in part on any dividend payment date beginning Jan. 21, 2021 at $1,000 per share plus declared dividends to but excluding the redemption date.
The dealer manager for the exchange offer is BofA Merrill Lynch (980 388-4813 or 888 292-0070). The information agent for the exchange offer is Georgeson Inc. (800 676-0098, 781 575-2137 or GEOffer@georgeson.com).
GE is a Fairfield, Conn.-based industrial manufacturer.
New Issue
| Issuer: | General Electric Co.
|
| Issue: | Fixed-to-floating noncumulative perpetual preferred stock, series D
|
| Shares: | 5,694,493
|
| Maturity: | Perpetual
|
| Dividend: | 5% initially, then floating from Jan. 21, 2021 at Libor plus 333 basis points
|
| Call option: | At par on any dividend payment date beginning Jan. 21, 2021
|
| Settlement date: | Jan. 20
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
