Published on 3/6/2014 in the Prospect News Investment Grade Daily.
New Issue: General Electric sells $3 billion senior notes in two tranches
By Aleesia Forni
Virginia Beach, March 6 - General Electric Co. priced a $3 billion two-part offering of senior notes (Aa3/AA+/) in tranches due 2024 and 2044 during Thursday's session, according to a syndicate source.
A $750 million tranche of 3.375% notes due 2024 priced at 99.061 to yield 3.487%, or Treasuries plus 75 basis points.
A second tranche was $2.25 billion of 4.5% 30-year bonds priced with a spread of Treasuries plus 87.5 bps. Pricing was at 99.089 to yield 4.556%.
Both tranches sold at the tight end of talk.
Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC were the joint bookrunners.
Proceeds will be used for general corporate purposes.
General Electric was last in the market pricing $7 billion of notes in three tranches on Oct. 1, 2012.
The technology and financial services company is based in Fairfield, Conn.
| Issuer: | General Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Joint bookrunners: | Barclays, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC
|
| Co-managers: | Banca IMI SpA, Blaylock Beal Van, LLC, BNP Paribas Securities Corp., CastleOak Securities, LP, HSBC Securities (USA) Inc., ING Financial Markets LLC, Lebenthal & Co., LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., RBS Securities Inc., Samuel A. Ramirez & Co., Inc., Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., Williams Capital Group, LP
|
| Trade date: | March 6
|
| Settlement date: | March 11
|
| Ratings: | Moody's: Aa3
|
| Standard & Poor's: AA+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | March 11, 2024
|
| Coupon: | 3.375%
|
| Price: | 99.061
|
| Yield: | 3.487%
|
| Spread: | Treasuries plus 75 bps
|
| Price talk: | Treasuries plus 75 bps to 80 bps, tightened from Treasuries plus 90 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
|
|
| 30-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | March 11, 2044
|
| Coupon: | 4.5%
|
| Price: | 99.089
|
| Yield: | 4.556%
|
| Spread: | Treasuries plus 87.5 bps
|
| Price talk: | Treasuries plus 90 bps area, Treasuries plus 105 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
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