By Andrea Heisinger
New York, Oct. 1 - General Electric Co. priced $7 billion of notes (Aa3/AA+/) in multiple tranches on Monday, a source close to the trade said.
The sale included $2 billion of 0.85% three-year notes priced at 99.973 to yield 0.859% with a spread of Treasuries plus 55 basis points. The notes were initially talked in the 67.5 bps over Treasuries area, with a margin of 2.5 bps, with revised guidance in the 55 bps to 65 bps range.
There is a make-whole call at 10 bps over Treasuries.
A $3 billion tranche of 2.7% 10-year notes sold at 99.765 to yield 2.727% with a spread of 110 bps over Treasuries. The notes were initially talked in the Treasuries plus 125 bps area, with revised guidance in the range of 110 bps to 120 bps.
There is a make-whole call at Treasuries plus 15 bps.
And a $2 billion tranche of 4.125% 30-year bonds was priced at 99.437 to yield 4.158% with a spread of Treasuries plus 135 bps. The bonds were initially talked in the Treasuries plus 157.5 bps area and later revised to the 135 bps to 145 bps range.
The bonds have a make-whole call at 20 bps over Treasuries.
Active bookrunners were Barclays, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. Passive bookrunners were Goldman Sachs & Co., Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC.
Proceeds will be used to repay debt, including all or a portion of $5 billion of 5% notes due in 2013, and for general corporate purposes.
GE was last in the market with a $4 billion issue of 5.25% 10-year notes priced on Nov. 29, 2007 at Treasuries plus 140 bps.
The technology and financial services company is based in Fairfield, Conn.
| Issuer: | General Electric Co.
|
| Issue: | Notes
|
| Amount: | $7 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. | (active), Goldman Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC (passive)
|
| Trade date: | Oct. 1
|
| Settlement date: | Oct. 9
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: AA+
|
|
|
| Three-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 9, 2015
|
| Coupon: | 0.85%
|
| Price: | 99.973
|
| Yield: | 0.859%
|
| Spread: | Treasuries plus 55 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 67.5 bps area, plus or minus 2.5 bps (initial), 55 bps to 65 bps (revised)
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | Oct. 9, 2022
|
| Coupon: | 2.7%
|
| Price: | 99.765
|
| Yield: | 2.727%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 125 bps area (initial), 110 bps to 120 bps (revised)
|
|
|
| 30-year bonds
|
| Amount: | $2 billion
|
| Maturity: | Oct. 9, 2042
|
| Coupon: | 4.125%
|
| Price: | 99.437
|
| Yield: | 4.158%
|
| Spread: | Treasuries plus 135 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 157.5 bps area (initial), 135 bps to 145 bps (revised)
|
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