GE gives early results, upsizes tender offers to buy back $7 billion

Chicago, June 8 – General Electric Co. announced the early participation results of its tender offers for multiple series of notes and an upsizing to the acceptance amount, according to a press release.

The company expects to repurchase $7 billion of notes.

The offer was originally grouped in three parts, with sub-caps of up to $1 billion on each of the second and third groups.

However, GE has raised the cap to $2,725,360,000 on the second group and to $3,912,511,000 for the third group.

With the raising of the maximum acceptance amount, this means that GE will repurchase all notes tendered except for one series: the 6.875% notes due 2039 in the second group, which will have less than the full amount tendered repurchased. The 2039 tendered notes in group two will be prorated using a factor of 86.6%.

First group

The first group of four series was structured as an any-and-all offer.

As of the early deadline, GE received and will accept tenders for the following amounts of notes:

• $22,357,000, or 4.77%, of the $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;

• $55,361,000, or 8.19%, of the $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;

• $200,622,000, or 21.03%, of the $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

• $73,789,000, or 9.63%, of the $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.

Second group

As stated above, the offer for the second group was converted from a $1 billion maximum acceptance amount to an acceptance amount of $2,725,360,000.

Accordingly, the company received tenders for and will accept the following amounts of notes from the second group:

• All of the $502,994,000 tendered, or 56.64%, of the $888 million of 6.15% 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;

• All of the $1,399,515,000, or 47.77%, of the $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

• $822,851,000 of the $949,783,000, or 47% tendered, of the $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.

Third group

The maximum acceptance amount was increased to $3,912,511,000 to allow for acceptance of all tendered notes from the four series listed in the third group.

GE received tenders for and will accept the following amounts of notes:

• All of the $751,507,000, or 50.1%, tendered of the $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;

• All of the $377,083,000, or 44.05%, tendered of the $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;

• All of the $310,545,000, or 31.05%, tendered of the $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

• All of the $2,473,376,000, or 65.96%, tendered of the $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.

Details

The early participation deadline was 5 p.m. ET on June 7, also the withdrawal deadline.

Investors who participated by the early deadline will receive an early tender premium of $50 per note.

Payment is planned for June 9.

The expiration date is technically 11:59 p.m. ET on June 21. However, the aggregate maximum amounts have been exceeded, and the company will no longer accept any more notes for purchase.

Pricing was set to be determined at 10 a.m. ET on June 8.

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, ge@dfking.com, http: www.dfking.com/ge).

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

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