By Wendy Van Sickle
Columbus, Ohio, Nov. 9 – GE Healthcare Holding LLC (GE HealthCare) priced $8.25 billion of senior notes (Baa2//BBB) on Wednesday in six tranches, according to a news release.
The notes include
• $1 billion of 5.55% senior notes due 2024;
• $1.5 billion of 5.6% senior notes due 2025;
• $1.75 billion of 5.65% senior notes due 2027;
• $1.25 billion of 5.857% senior notes due 2030;
• $1.75 billion of 5.905% senior notes due 2032; and
• $1 billion of 6.377% senior notes due 2052.
The notes are being offered as part of the financing for the proposed spinoff of GE HealthCare from General Electric Co., which is expected to be completed in the first week of January 2023.
The notes due 2030, 2032 and 2052 will initially be issued by GE HealthCare to General Electric Co. and are expected to be transferred and delivered by General Electric to BofA Securities, Inc. and Morgan Stanley & Co. LLC, as selling noteholders, in satisfaction of certain debt obligations in connection with the spinoff. GE HealthCare will not receive any proceeds from the offering of these securities.
The closing of the offering is not contingent on the completion of the spinoff. The notes will be guaranteed by General Electric until completion of the spinoff, after which it will be released automatically from all obligations under its guarantees.
GE HealthCare expects to convert into a corporation and be renamed GE HealthCare Technologies Inc. prior to the completion of the spinoff.
Investor calls took place on Tuesday and Wednesday, according to a source.
The source expected that the deal would be split into benchmark tranches denominated in dollars and euros, but the company announced only dollar notes in its release Wednesday evening.
The Rule 144A and Regulation S dollar notes were expected to come across two-year to 30-year tenors.
In addition to BofA Securities and Morgan Stanley, joint bookrunners include BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC.
The notes will initially be guaranteed by General Electric Co. After the spinoff, General Electric will no longer be listed on the notes.
The issuer is a global medical technology, pharmaceutical diagnostics and digital solutions provider.
| Issuer: | GE Healthcare Holding LLC
|
| Guarantor: | General Electric Co. (only until spinoff of issuer)
|
| Amount: | $8.25 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC
|
| Pricing date: | Nov. 9
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa2
|
| Fitch: BBB
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| 2024 notes
|
| Amount: | $1 billion
|
| Maturity: | 2024
|
| Coupon: | 5.55%
|
|
|
| 2025 notes
|
| Amount: | $1.5 billion
|
| Maturity: | 2025
|
| Coupon: | 5.6%
|
|
|
| 2027 notes
|
| Amount: | $1.75 billion
|
| Maturity: | 2027
|
| Coupon: | 5.65%
|
|
|
| 2030 notes
|
| Amount: | $1.25 billion
|
| Maturity: | 2030
|
| Coupon: | 5.857%
|
|
|
| 2032 notes
|
| Amount: | $1.75 billion
|
| Maturity: | 2032
|
| Coupon: | 5.905%
|
|
|
| 2052 notes
|
| Amount: | $1 billion
|
| Maturity: | 2052
|
| Coupon: | 6.377%
|
|
|
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