GE Capital Australia, Canada and UK tender for multiple note series

By Susanna Moon

Chicago, April 25 – GE Capital announced tender offers for a number of series of notes issued by GE Capital Australia Funding Pty. Ltd., GE Capital Canada Funding Co. and GE Capital UK Funding Unlimited Co.

GE Capital Australia is tendering for three note series, with pricing to be set at 6 a.m. ET on May 5 using an interpolated mid-swap rate plus a fixed spread as follows:

• A$200 million 4% notes due May 2018 with a spread of 50 basis points;

• A$150 million 4.125% notes due July 2018 with a spread of 55 bps; and

• A$150 million 5% notes due September 2019 with a spread of 55 bps.

The tender offer will end at 11 a.m. ET on May 4, according to a company announcement.

In another tender, GE Capital Canada is offering to purchase the following notes, with pricing to be set at 10 a.m. ET on May 5 using a reference security plus a fixed spread:

• C$1.35 billion 5.53% notes due August 2017 will price using the 1½% government of Canada bond due September 2017 plus 45 bps;

• C$400 million 4.4% notes due February 2018 using the 1¼% government of Canada bond due March 2018 plus 55 bps;

• C$1 billion 2.42% notes due May 2018 using the 4¼% government of Canada bond due June 2018 plus 35 bps;

• C$350 million 3.55% notes due June 2019 using the 3¾% government of Canada bond due June 2019 plus 55 bps;

• C$700 million 5.68% notes due September 2019 using the 1¾% government of Canada bond due September 2019 plus 55 bps; and

• C$1.35 billion 5.73% notes due October 2037 using the 3½% government of Canada bond plus 110 bps.

The tender for the Canadian notes will run until 5 p.m. ET on May 4.

GE Capital UK also is tendering for the following notes at par for each £1,000 principal amount:

• £160 million floating-rate notes due March 2017; and

• £325 million floating-rate notes due January 2018.

Finally, GE Capital UK also began a tender offer for six note series, with pricing to be set at 8 a.m. ET on May 5 using a reference security plus a spread as follows:

• £600 million 4.125% notes due September 2017 using the 1% U.K. Treasury stock due September 2017 plus 70 bps;

• £300 million 2.375% notes due December 2018 using the 1¼% U.K. Treasury stock due July 2018 plus 70 bps;

• £300 million 5.625% notes due April 2019 using the 4½% U.K. Treasury stock due March 2019 plus 50 bps;

• £625 million 4.375% notes due July 2019 using the 1¾% U.K. Treasury stock due July 2019 plus 85 bps;

• £425 million 5.125% notes due May 2023 using the 2¼% U.K. Treasury stock due September 2023 plus 55 bps; and

• £650 million 6.25% notes due May 2038 using the 4¾% U.K. Treasury stock due December 2038 plus 70 bps.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender for the pound-denominated notes will end at 11 a.m. ET on May 4.

Settlement for each note series is expected to occur on May 12.

The tender offers are not conditioned on any minimum amount of notes being tendered or on the completion of any other offer.

On April 13, GE Capital UK Funding changed its name to GE Capital UK Funding Unlimited Co.

The purpose of the tender offers is to retire a some of the companies’ debt and to reduce cash interest expense as part of General Electric Co.’s plan announced on April 10, which is to cut the size of its financial services businesses through the sale of most of General Electric Capital Corp.’s assets and to focus on continued investment and growth in GE’s industrial businesses.

Notes purchased in the tender offer will be retired.

Deutsche Bank AG, London Branch (+44 0 207 545 8011) is the global coordinator. Deutsche Bank (+44 0 207 545 8011), Barclays Bank plc (+44 0 203 134 8515), Royal Bank of Canada, Sydney Branch, RBC Dominion Securities Inc. and RBC Europe Ltd. are the dealer managers. RBC may be contacted at 416 842-6311.

Lucid Issuer Services Ltd. (+44 0 207 704 0880 or ge@lucid-is.com) is the global tender agent and information agent.

Another tender

GE Capital Australia Funding Pty. Ltd. also is tendering for four more note series, with pricing for each A$1,000 principal amount, according to a separate notice.

For three series, pricing will be set at 10 p.m. ET on May 5 using an asset swap rate plus a spread as follows:

• A$400 million 5.25% notes due August 2017 will price with a spread of 45 bps;

• A$500 million 4.5% notes due January 2018 will price with a spread of 50 bps; and

• A$200 million 6% notes due March 2019 will price with a spread of 60 bps.

For GE Capital Australia’s A$250 million floating-rate notes due January 2018, the purchase price will be 101.125%.

The tender offer will end at noon ET on May 5.

Holders will also receive accrued interest up to but excluding the settlement date of May 12.

The purpose of the tender is to retire some of the company’s outstanding debt and to reduce cash interest expense as part of GE’s plan announced on April 10.

Deutsche Bank AG, Sydney Branch (+61 2 8258 1339), Barclays Bank plc (+44 (0)203 134 8515) and Royal Bank of Canada, Sydney Branch (+61 2 9033 3033) are the dealer managers.

Lucid Issuer Services Ltd. (+44 (0) 207 704 0880, +61 2 9260 6000 or email: ge@lucid-is.com) is the information agent and BTA Institutional Services Australia Ltd. is the Australian tender agent.

GE Capital Funding Canada is the Canadian financing arm for GE Capital Canada.

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