GE launches debt tender offers for up to $4.87 billion of notes

By Rebecca Melvin

Concord, N.H., May 24 – General Electric Co. has started cash tender offers to purchase debt securities in three groups including any and all of $2,865,000,000 principal amount of notes from four series due 2021 to 2023, issued either by GE or General Electric Capital Corp.; up to $1 billion of $5,839,000,000 principal amount of notes from three series due 2037, 2038 and 2039 issued by GE Capital; and up to $1 billion of $7,106,000,000 principal amount of four series of notes due 2040 to 2050 issued by GE, according to a company release.

The offers are the company’s next step in its previously announced deleveraging plan to strengthen its balance sheet and achieve a target of less than 2.5 times net debt to EBITDA.

The company is offering to buy any and all of the following notes:

• $469 million of 4.65% notes due Oct. 17, 2021 (Cusip: 36962G5J9) with pricing to be based on the 2.875% U.S. Treasury due Oct. 15, 2021 plus 25 basis points;

• $676 million of 3.15% notes due Sept. 7, 2022 (Cusip: 36962G6F6) with pricing to be based on the 0.125% U.S. Treasury due Aug. 31, 2022 plus 25 bps;

• $954 million of 2.7% notes due Oct. 9, 2022 (Cusip: 369604BD4) with pricing to be based on the 0.125% U.S. Treasury due Sept. 30, 2022 plus 25 bps; and

• $766 million of 3.1% notes due Jan. 9, 2023 (Cusip: 36962G6S8) with pricing to be based on the 0.125% U.S. Treasury due Dec. 31, 2022 plus 30 bps.

Based on acceptance priority order, GE is also offering to purchase up to $1 billion of the following:

• $888 million of 5.15% notes due Aug. 7, 2037 (Cusip: 36962G3A0) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 104 bps;

• $2.93 billion of 5.875% notes due Jan. 14, 2038 (Cusip: 36962G3P7) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 107 bps; and

• $2,021,000,000 billion of 6.875% notes due Jan. 10. 2039 (Cusip: 36962G4B7) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 115 bps.

Based on acceptance priority order, GE is also offering to purchase up to $1 billion of the following:

• $1.5 billion of 4.25% notes due May 1, 2040 (Cusip: 369604BX0) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 107 bps;

• $856 million of 4.125% notes due Oct. 9, 2042 (Cusip: 369604BF9) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 112 bps;

• $1 billion of 4.5% notes due March 11, 2044 (Cusip: 369604BH5) with pricing to be based on the 2.25% U.S. Treasury due May 15, 2041 plus 119 bps; and

• $3.75 billion of 4.35% notes due May 1, 2050 (Cusip: 369604BY8) with pricing to be based on the 1.875% U.S. Treasury due Feb. 15, 2051 plus 119 bps.

The notes in groups two and three will be accepted in accordance with the applicable acceptance priority levels and may be subject to proration.

Noteholders who tender before the early tender deadline will also receive a $50 early tender premium per $1,000 note.

Timeline

The early tender time is 5 p.m. ET on June 7, which is also the withdrawal deadline.

Pricing will be determined at 10 a.m. ET on May 12.

Early settlement is planned for June 9.

The offer expires at 11:59 p.m. ET on June 21.

Settlement is expected for June 23.

Details

Proration may occur in a series if the acceptance of all of one series, working in acceptance order, would cause the cap to be exceeded.

BofA Securities Inc. (704 999-4067) and J.P. Morgan Securities LLC (212 834-4045 and 866 834-4666) are the lead dealer managers for the tender offers, and BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Blaylock Van, LLC and CastleOak Securities, LP are the co-managers in connection with the offers.

D.F. King & Co. Inc. is the tender and information agent (212 269-5550, 877 732-3617).

The Boston based conglomerate operates in segments including aviation, healthcare and power, among others.

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