Summary
General Electric Company (GE) filed an 8-K on June 15, 2020, announcing the closing of two significant debt offerings. The first was a public offering of $1.5 billion in 4.350% Notes due 2050, which further bolsters a previously issued series of these notes. The second was a private debt offering by GE Capital for $1.5 billion in 4.400% Notes due 2030, fully guaranteed by GE. These offerings are intended to strengthen GE's financial position by reducing shorter-duration debt, including intercompany obligations and GE Capital's outstanding debt. These actions are part of GE's ongoing deleveraging strategy. The proceeds will be used to manage its debt profile, which is crucial for maintaining financial flexibility and credit ratings. Investors should note that these notes rank equally with other senior unsecured debt. The filing also incorporates by reference the underwriting agreements and indentures related to these issuances, providing detailed terms for interested parties.
Key Highlights
- 1GE closed a public offering of $1.5 billion in 4.350% Notes due 2050.
- 2GE Capital closed a private offering of $1.5 billion in 4.400% Notes due 2030, guaranteed by GE.
- 3Proceeds from both offerings will be used to reduce shorter-duration debt, including intercompany and GE Capital debt.
- 4The new notes rank pari passu (equally) with GE's existing and future senior unsecured debt.
- 5The 2050 Notes are a further issuance and form a single series with existing 2050 Notes.
- 6The 2030 Notes are a further issuance and form a single series with existing 2030 Notes issued by GE Capital.