By William Gullotti and Cristal Cody
Buffalo, N.Y., Nov. 10 – Price talk emerged regarding the six-part offering of senior notes by GE Healthcare Holding LLC (GE HealthCare) totaling $8.25 billion (Baa2//BBB) that priced Wednesday, according to a news release and additional information from a market source.
GE priced the following:
• $1 billion of 5.55% senior notes due 2024 at Treasuries plus 105 basis points, tighter than initial talk in the Treasuries plus 135 bps area;
• $1.5 billion of 5.6% senior notes due 2025 at 120 bps over Treasuries, low to initial talk in the Treasuries plus 150 bps area;
• $1.75 billion of 5.65% senior notes due 2027 at 150 bps over Treasuries, below initial talk in the Treasuries plus 175 bps area;
• $1.25 billion of 5.857% senior notes due 2030 at 170 bps over Treasuries, tight to initial talk in the Treasuries plus 200 bps area;
• $1.75 billion of 5.905% senior notes due 2032 at 185 bps over Treasuries, low to initial talk in the Treasuries plus 215 bps area; and
• $1 billion of 6.377% senior notes due 2052 at a spread of 210 bps over Treasuries, below initial talk in the Treasuries plus 245 bps area.
As previously reported Wednesday, the notes were 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.
As previously reported, 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 news 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)
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| Amount: | $8.25 billion
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| Issue: | Senior notes
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| 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
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| Settlement date: | Nov. 22
|
| Ratings: | Moody’s: Baa2
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| Fitch: BBB
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| Distribution: | Rule 144A and Regulation S
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|
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| 2024 notes
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| Amount: | $1 billion
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| Maturity: | Nov. 15, 2024
|
| Coupon: | 5.55%
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| Spread: | 105 bps over Treasuries
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| Price talk: | Treasuries plus 135 bps area
|
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| 2025 notes
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| Amount: | $1.5 billion
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| Maturity: | Nov. 15, 2025
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| Coupon: | 5.6%
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| Spread: | 120 bps over Treasuries
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| Price talk: | Treasuries plus 150 bps area
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| 2027 notes
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| Amount: | $1.75 billion
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| Maturity: | Nov. 15, 2027
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| Coupon: | 5.65%
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| Spread: | 150 bps over Treasuries
|
| Price talk: | Treasuries plus 175 bps area
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|
|
| 2030 notes
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| Amount: | $1.25 billion
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| Maturity: | March 15, 2030
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| Coupon: | 5.857%
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| Spread: | 170 bps over Treasuries
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| Price talk: | Treasuries plus 200 bps area
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|
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| 2032 notes
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| Amount: | $1.75 billion
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| Maturity: | Nov. 15, 2032
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| Coupon: | 5.905%
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| Spread: | 185 bps over Treasuries
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| Price talk: | Treasuries plus 215 bps area
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| 2052 notes
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| Amount: | $1 billion
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| Maturity: | Nov. 15, 2052
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| Coupon: | 6.377%
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| Spread: | 210 bps over Treasuries
|
| Price talk: | Treasuries plus 245 bps area
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