GE Reopens Debt Offerings for $3B in Proceeds to Enhance and Extend Liquidity

In response to a reverse inquiry from a long-term strategic investor, GE reopened portions of its prior debt offerings for GE Company and GE Capital for $3.0 billion in total proceeds.

GE expects to use these proceeds to reduce shorter-duration debt, including repaying a portion of GE’s intercompany debt obligations to GE Capital and reducing GE Capital’s outstanding debt obligations. The combination of transactions is expected to be leverage neutral over time.

Today’s action builds on a series of recent leverage-neutral actions that have enhanced the company’s near-term liquidity profile by extending $4.2 billion of Industrial maturities and $4.4 billion of Capital maturities to date. GE will continue to monitor its operations in the current environment and remains committed to achieving its leverage goals over time.

GE priced $1.5 billion aggregate principal amount of 4.350% Notes due 2050 in a public offering at a price to the public of 100.176%. The GE notes will form a single series with the 4.350% notes due 2050 that were issued on April 22, 2020.

GE Capital priced $1.5 billion aggregate principal amount of 4.400% Notes due 2030 in a private offering at an issue price of 105.074%. The GE Capital notes will form a single series with the 4.400% notes due 2030 that were issued by GE Capital Funding, LLC, a finance subsidiary of GE Capital, on May 18, 2020. The GE Capital notes will be issued by GE Capital Funding, LLC and guaranteed by GE.

Upon closing of the offerings, both the GE notes and the GE Capital notes will rank pari passu with the outstanding existing and future senior unsecured debt of GE. Both offerings are expected to close on June 15, 2020, subject to satisfaction of customary closing conditions.

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