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GE Capital to syndicate $3.5 billion Blackstone financing by mid-2016
New York, April 10 – General Electric Capital Corp. intends to syndicate by the middle of next year $3.5 billion of seller financing it is providing as part of Blackstone Group’s acquisition of GE Capital’s real estate assets.
The total purchase price for the assets is $22.5 billion, according to an 8-K filing with the Securities and Exchange Commission.
At closing, Blackstone intends to sell $10 billion of the portfolio to Wells Fargo & Co., GE said.
The purchase price is payable in cash.
Closing is expected in multiple stages by the end of this year.
General Electric Co. disclosed the seller financing Friday morning as part of the unveiling of a plan to sell most of GE Capital’s assets.
The aim is to “create a simpler, more valuable company by reducing the size of its financial businesses” and “by focusing on continued investment and growth in its world-class industrial businesses,” GE said in a news release.
As an initial step, GE announced $26.5 billion of transactions including an agreement to sell the bulk of the assets of GE Capital Real Estate to funds managed by Blackstone. Wells Fargo will acquire a portion of the performing loans at closing and GE has letters of intent with other buyers for an additional $4 billion of commercial real estate assets.
The strategy to downsize the financial businesses is intended to be one that “works for GE and for GE Capital Corp. debtholders and GE shareholders,” the company said.
GE Capital will be merged into GE and a new intermediate holding company will be created for the businesses after the merger.
GE is a Fairfield, Conn.-based industrial manufacturer.
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