By Cristal Cody
Tupelo, Miss., April 13 – General Electric Co. priced $6 billion of senior notes (Baa1/BBB+/BBB) in four parts on Monday, according to a market source.
A $1 billion tranche of 3.45% seven-year notes priced at 99.845 to yield 3.475%, or a spread of Treasuries plus 285 basis points.
The company sold $1.25 billion of 3.625% 10-year notes at 99.841 to yield 3.644% and with a 290 bps over Treasuries spread.
A $1.5 billion offering of 4.25% 20-year notes came at 99.718 to yield 4.271%, or a spread of 290 bps over Treasuries.
Also, $2.25 billion of 4.35% 30-year notes priced at 99.65 to yield 4.371% and with a Treasuries plus 300 bps spread.
All four tranches were initially talked to price in the Treasuries plus 375 bps area.
BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the active bookrunners. BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were passive lead managers.
Proceeds will be used to fund the tender offer for General Electric’s $3 billion of 2.7% notes due 2022, €1.8 billion of 0.375% notes due 2022, €1.2 billion of 1.25% notes due 2023, $750 million of 3.375% notes due 2024 and €650 million of floating-rate notes due 2020.
GE is a Fairfield, Conn.-based industrial manufacturer.
| Issuer: | General Electric Co.
|
| Amount: | $6 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC (active); BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. (passive)
|
| Trade date: | April 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Seven-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 1, 2027
|
| Coupon: | 3.45%
|
| Price: | 99.845
|
| Yield: | 3.475%
|
| Spread: | Treasuries plus 285 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | May 1, 2030
|
| Coupon: | 3.625%
|
| Price: | 99.841
|
| Yield: | 3.644%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
|
|
| 20-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | May 1, 2040
|
| Coupon: | 4.25%
|
| Price: | 99.718
|
| Yield: | 4.271%
|
| Spread: | Treasuries plus 290 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
|
|
| 30-year notes
|
| Amount: | $2.25 billion
|
| Maturity: | May 1, 2050
|
| Coupon: | 4.35%
|
| Price: | 99.65
|
| Yield: | 4.371%
|
| Spread: | Treasuries plus 300 bps
|
| Price guidance: | Treasuries plus 375 bps area
|
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