General Electric enters $19.8 billion credit facility with six banks

By Marisa Wong

Morgantown, W.Va., June 26 – General Electric Co. entered into an unsecured credit facility with six banking organizations on June 22 for initial total commitments of $19.8 billion, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility replaces the unsecured credit facilities that were entered into on Jan. 15, 2018. The prior facilities were terminated upon entry into the new facility.

The new facility matures on Dec. 31, 2020.

Borrowings may be prepaid in whole or in part without premium or penalty. The facility is also subject to mandatory repayment provisions and commitment reductions in connection with specified issuances of equity and incurrences of incremental debt as well as with a portion of industrial business disposition proceeds.

Extensions of credit may be used for working capital or any other general corporate purposes.

As of June 26, GE has made no borrowings under the credit facility.

GE said it entered into the new facility to increase its total effective amount available to about $40 billion from $37.5 billion and to extend the duration of its unsecured credit facilities.

The extension aligns the facilities with the execution timeline for its new strategic plan, which includes focusing on aviation, power and renewable energy; separating GE Healthcare as a standalone company; separating Baker Hughes, a GE Co. over time; reducing debt; further reducing the size of GE Capital’s balance sheet; and introducing a leaner corporate structure.

The conglomerate is based in Boston.

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