GE (NYSE:GE) announced today that, in response to a reverse
inquiry from a long-term strategic investor, it 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 Company 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”). 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”). 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.
The GE notes will be offered and sold pursuant to the existing
effective shelf registration statement filed with the Securities
and Exchange Commission (“SEC”). The offering of GE notes will be
made only by means of a prospectus supplement and the accompanying
base prospectus, electronic copies of which are available on the
SEC’s website, www.sec.gov.
The GE Capital notes will be offered and sold to qualified
institutional buyers in accordance with Rule 144A under the
Securities Act of 1933, as amended (the “Securities Act”), and to
non-U.S. persons outside the United States in accordance with
Regulation S under the Securities Act and applicable exemptions
from registration, prospectus or like requirements under the laws
and regulations of the relevant jurisdictions outside the United
States. The GE Capital securities referenced herein and related
guarantees have not been registered under the Securities Act, or
any state securities laws, and may not be offered or sold in the
United States absent registration or an applicable exemption from
the registration requirements of the Securities Act and the rules
promulgated thereunder.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any securities referenced herein,
nor shall there be any sale of such securities in any state or
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
Caution Concerning Forward-Looking Statements This
announcement contains “forward-looking statements”—that is,
statements related to future, not past, events. In this context,
forward-looking statements often address our expected future
business and financial performance and financial condition, and
often contain words such as “expect,” “anticipate,” “intend,”
“plan,” “believe,” “seek,” “see,” “will,” “would,” “estimate,”
“forecast,” “target,” “preliminary,” or “range.” Forward-looking
statements by their nature address matters that are, to different
degrees, uncertain, such as statements about the expected timing,
size or other terms of the offers of securities described herein,
our ability to complete the offers; the potential impacts of the
COVID-19 pandemic on our business operations, financial results and
financial position and on the world economy; our expected financial
performance, including cash flows, revenues, organic growth,
margins, earnings and earnings per share; macroeconomic and market
conditions and volatility; planned and potential business or asset
dispositions; our de-leveraging plans, including leverage ratios
and targets, the timing and nature of actions to reduce
indebtedness and our credit ratings and outlooks; GE’s and GE
Capital’s funding and liquidity; our businesses’ cost structures
and plans to reduce costs; restructuring, goodwill impairment or
other financial charges; or tax rates.
For us, particular uncertainties that could cause our actual
results to be materially different than those expressed in our
forward-looking statements include: the severity, magnitude and
duration of the COVID-19 pandemic, including impacts of the
pandemic and of businesses’ and governments’ responses to the
pandemic on our operations and personnel, and on commercial
activity and demand across our and our customers’ businesses, and
on global supply chains; our inability to predict the extent to
which the COVID-19 pandemic and related impacts will continue to
adversely impact our business operations, financial performance,
results of operations, financial position, the prices of our
securities and the achievement of our strategic objectives; changes
in macroeconomic and market conditions and market volatility
(including developments and volatility arising from the COVID-19
pandemic), including interest rates, the value of securities and
other financial assets (including our equity ownership position in
Baker Hughes), oil and other commodity prices and exchange rates,
and the impact of such changes and volatility on our financial
position; our de-leveraging and capital allocation plans, including
with respect to actions to reduce our indebtedness, the timing and
amount of GE dividends, organic investments, and other priorities;
further downgrades of our current short- and long-term credit
ratings or ratings outlooks, or changes in rating application or
methodology, and the related impact on our liquidity, funding
profile, costs and competitive position; GE’s liquidity and the
amount and timing of our GE Industrial cash flows and earnings,
which may be impacted by customer, supplier, competitive,
contractual and other dynamics and conditions; GE Capital’s capital
and liquidity needs, including in connection with GE Capital’s
run-off insurance operations and discontinued operations; the
amount and timing of required capital contributions to the
insurance operations and any strategic actions that we may pursue;
the impact of conditions in the financial and credit markets on GE
Capital’s ability to sell financial assets; the availability and
cost of funding; and GE Capital’s exposure to particular
counterparties and markets; our success in executing and completing
asset dispositions or other transactions, including our plan to
exit our equity ownership position in Baker Hughes, the timing of
closing for such transactions and the expected proceeds and
benefits to GE; global economic trends, competition and
geopolitical risks, including changes in the rates of investment or
economic growth in key markets we serve, or an escalation of trade
tensions such as those between the U.S. and China; market
developments or customer actions that may affect levels of demand
and the financial performance of the major industries and customers
we serve, such as secular, cyclical and competitive pressures in
our Power business, pricing and other pressures in the renewable
energy market, levels of demand for air travel and other customer
dynamics such as early aircraft retirements, conditions in key
geographic markets and other shifts in the competitive landscape
for our products and services; operational execution by our
businesses, including our ability to improve the operations and
execution of our Power and Renewable Energy businesses, and the
performance of our Aviation business; changes in law, regulation or
policy that may affect our businesses, such as trade policy and
tariffs, regulation related to climate change and the effects of
U.S. tax reform and other tax law changes; our decisions about
investments in new products, services and platforms, and our
ability to launch new products in a cost-effective manner; our
ability to increase margins through implementation of operational
changes, restructuring and other cost reduction measures; the
impact of regulation and regulatory, investigative and legal
proceedings and legal compliance risks, including the impact of
Alstom, SEC and other investigative and legal proceedings; the
impact of actual or potential failures of our products or
third-party products with which our products are integrated, such
as the fleet grounding of the Boeing 737 MAX and the timing of its
return to service and return to delivery, and related reputational
effects; the impact of potential information technology,
cybersecurity or data security breaches; and the other factors that
are described in “Risk Factors” in our Annual Report on Form 10-K
for the year ended December 31, 2019, filed with the SEC on
February 24, 2020, and under Part II, Item 1A, of our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020 filed with
the SEC on April 29, 2020, as such descriptions may be updated or
amended in any future reports we file with the SEC.
About GE GE (NYSE:GE) drives the world forward by
tackling its biggest challenges. By combining world-class
engineering with software and analytics, GE helps the world work
more efficiently, reliably, and safely. For more than 125 years, GE
has invented the future of industry, and today it leads new
paradigms in additive manufacturing, materials science, and data
analytics. GE people are global, diverse and dedicated, operating
with the highest integrity and passion to fulfill GE’s mission and
deliver for our customers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200608005720/en/
GE Investors Steve Winoker, 617.443.3400
swinoker@ge.com
GE Media Mary Kate Mullaney, 202.304.6514
marykate.nevin@ge.com
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2024 to May 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From May 2023 to May 2024