By Cristal Cody
Tupelo, Miss., May 7 – GE Capital Global Holdings, LLC subsidiary GE Capital Funding, LLC priced $4.5 billion of senior notes (Baa1/BBB+/BBB) in four tranches on Wednesday, according to a market source.
A $1.35 billion tranche of 3.45% five-year notes priced at a spread of Treasuries plus 310 basis points.
A $1 billion offering of 4.05% seven-year notes priced with a 350 bps over Treasuries spread.
The company sold $1.4 billion of 4.4% 10-year notes at a spread of 370 bps over Treasuries.
In the final tranche, $750 million of 4.55% 12-year notes priced at a spread of 385 bps over Treasuries.
The five-year notes were initially talked to price at the 310 bps spread area, the seven-year notes were talked at the 350 bps area, the 10-year tranche was initially guided to price in the 370 bps over Treasuries area and the 12-year bonds were talked at the 385 bps spread area.
BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC were the bookrunners.
The notes will be guaranteed by General Electric Co.
The proceeds are expected to be used to fund a tender of up to an equivalent amount of GE Capital bonds maturing through 2023. Any excess proceeds will be used to repurchase, redeem or repay outstanding debt, including upcoming maturities of outstanding notes.
GE is a Fairfield, Conn.-based industrial manufacturer.
| Issuer: | GE Capital Funding, LLC
|
| Guarantor: | General Electric Co.
|
| Amount: | $4.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC
|
| Trade date: | May 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $1.35 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 3.45%
|
| Spread: | Treasuries plus 310 bps
|
| Price guidance: | Treasuries plus 310 bps area
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2027
|
| Coupon: | 4.05%
|
| Spread: | Treasuries plus 350 bps
|
| Price guidance: | Treasuries plus 350 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.4 billion
|
| Maturity: | May 15, 2030
|
| Coupon: | 4.4%
|
| Spread: | Treasuries plus 370 bps
|
| Price guidance: | Treasuries plus 370 bps area
|
|
|
| 12-year notes
|
| Amount: | $750 million
|
| Maturity: | May 15, 2032
|
| Coupon: | 4.55%
|
| Spread: | Treasuries plus 385 bps
|
| Price guidance: | Treasuries plus 385 bps area
|
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