GE Capital Australia wraps tender offer, sets pricing for three notes

By Susanna Moon

Chicago, May 6 – GE Capital Australia Funding Pty. Ltd. said it priced its tender offer for four series of notes that ran until noon ET on May 5.

GE Capital Australia accepted all of the notes tendered in the offer with settlement on May 12, according to a company notice

Investors had tendered the following amounts, with pricing for each A$1,000 principal amount set at 10 p.m. ET on May 5 using an asset swap rate plus a spread:

• A$176.06 million of the A$400 million 5.25% notes due August 2017 with a purchase price of A$1,036.65 using a purchase yield of 2.331% based on a spread of 45 basis points;

• A$269.18 million of the A$500 million 4.5% notes due January 2018 with a purchase price of A$1,035.59 using a purchase yield of 2.371% based on a spread of 50 bps; and

• A$84,811,000 of the A$200 million 6% notes due March 2019 with a purchase price of A$1,097.15 using a purchase yield of 2.44% based on a spread of 60 bps.

For GE Capital Australia’s A$250 million floating-rate notes due January 2018, the purchase price will be 101.125%, or A$1,011.25 per A$1,000 principal amount. Holders tendered A$135.91 million of these notes.

Holders will also receive accrued interest up to but excluding the settlement date.

The purpose of the tender is to retire some of the company’s outstanding debt and to reduce cash interest expense as part of GE’s plan announced on April 10, as previously announced.

Deutsche Bank AG, Sydney Branch (+61 2 8258 1339), Barclays Bank plc (+44 (0)203 134 8515) and Royal Bank of Canada, Sydney Branch (+61 2 9033 3033) are the dealer managers.

Lucid Issuer Services Ltd. (+44 (0) 207 704 0880, +61 2 9260 6000 or email: ge@lucid-is.com) is the information agent and BTA Institutional Services Australia Ltd. is the Australian tender agent.

More tenders

On May 5, GE Capital announced the results of tender offers for a number of series of notes issued by GE Capital Australia Funding Pty. Ltd., GE Capital Canada Funding Co. and GE Capital UK Funding Unlimited Co.

GE Capital Australia was tendering for three note series, with pricing set at 6 a.m. ET on May 5 using an interpolated mid-swap rate plus a fixed spread.

Holders had tendered the following amounts with a purchase price per A$1,000 principal amount:

• A$11,061,000 of the A$200 million 4% notes due May 2018 with a purchase price of A$1,030.99 using a reference yield of 1.9% and a purchase yield of 2.414% based on a spread of 50 bps;

• A$15,256,000 of the A$150 million 4.125% notes due July 2018 with a purchase price of A$1,035.13 using a reference yield of 1.907% and a purchase yield of 2.472% based on a spread of 55 bps; and

• A$15,098,000 of the A$150 million 5% notes due September 2019 with a purchase price of A$1,079.07 using a reference yield of 1.956% and a purchase yield of 2.522% based on a spread of 55 bps.

The tender offer ended at 11 a.m. ET on May 4. The tender began April 25.

In another tender, GE Capital Canada was offering to purchase the following notes, with pricing set at 10 a.m. ET on May 5 using a reference security plus a fixed spread.

Holders had tendered the following amounts with pricing for each C$1,000 principal amount:

• C$700,182,000 of the C$1.35 billion 5.53% notes due August 2017 priced using the 1½% government of Canada bond due September 2017 plus 45 bps. The purchase price was set at C$1,056.66 using a reference yield of 0.565% and a purchase yield of 1.015%;

• C$231,481,000 of the C$400 million 4.4% notes due February 2018 using the 1¼% government of Canada bond due March 2018 plus 55 bps. The purchase price was set at C$1,056.65 using a reference yield of 0.556% and a purchase yield of 1.106%;

• C$794,181,000 of the C$1 billion 2.42% notes due May 2018 using the 4¼% government of Canada bond due June 2018 plus 35 bps. The purchase price was set at C$1,030.36 using a reference yield of 0.573% and a purchase yield of 0.923%;

• C$252,253,000 of the C$350 million 3.55% notes due June 2019 using the 3¾% government of Canada bond due June 2019 plus 55 bps. The purchase price was set at C$1,072.21 using a reference yield of 0.608% and a purchase yield of 1.158%;

• C$410,927,000 of the C$700 million 5.68% notes due September 2019 using the 1¾% government of Canada bond due September 2019 plus 55 bps. The purchase price was set at C$1,147.23 using a reference yield of 0.608% and a purchase yield of 1.158%; and

• C$1,146,061,000 of the C$1.35 billion 5.73% notes due October 2037 using the 3½% government of Canada bond plus 110 bps. The purchase price was set at C$1,404.29 using a reference yield of 2.028% and a purchase yield of 3.128%.

The tender for the Canadian notes ended at 5 p.m. ET on May 4. GE Capital Australia Funding Pty. Ltd.

GE Capital UK also was tendering for two series of floating-rate notes at par for each £1,000 principal amount, and investors had tendered the following amounts:

• £45.3 million of the £160 million floating-rate notes due March 2017; and

• £114,867,000 of the £325 million floating-rate notes due January 2018.

Finally, GE Capital UK was tendering for six note series, with pricing set at 8 a.m. ET on May 5 using a reference security plus a spread. Investors had tendered the following amounts with the purchase price for each £1,000 principal amount:

• £136.74 million of the £600 million 4.125% notes due September 2017 using the 1% U.K. Treasury stock due September 2017 plus 70 bps. The purchase price was set at £1,040.66 using a reference yield of 0.431% and a purchase yield of 1.134%;

• £104,389,000 of the £300 million 2.375% notes due December 2018 using the 1¼% U.K. Treasury stock due July 2018 plus 70 bps. The purchase price was set at £1,030.97 using a reference yield of 0.456% and a purchase yield of 1.159%;

• £171,254,000 of the £300 million 5.625% notes due April 2019 using the 4½% U.K. Treasury stock due March 2019 plus 50 bps. The purchase price was set at £1,135.12 using a reference yield of 0.46% and a purchase yield of 0.962%;

• £163,462,000 of the £625 million 4.375% notes due July 2019 using the 1¾% U.K. Treasury stock due July 2019 plus 85 bps. The purchase price was set at £1,089.77 using a reference yield of 0.64% and a purchase yield of 1.496%;

• £249.74 million of the £425 million 5.125% notes due May 2023 using the 2¼% U.K. Treasury stock due September 2023 plus 55 bps. The purchase price was set at £1,215.41 using a reference yield of 1.274% and a purchase yield of 1.832%; and

• £382,796,000 of the £650 million 6.25% notes due May 2038 using the 4¾% U.K. Treasury stock due December 2038 plus 70 bps. The purchase price was set at £1,516.93 using a reference yield of 2.281% and a purchase yield of 3.003%.

Holders also will receive accrued interest up to but excluding the settlement date.

The tender for the pound-denominated notes ended at 11 a.m. ET on May 4.

Settlement for each note series is expected to occur on May 12.

The tender offers were not conditioned on any minimum amount of notes being tendered or on the completion of any other offer.

On April 13, GE Capital UK Funding changed its name to GE Capital UK Funding Unlimited Co.

The purpose of the tender offers is to retire a some of the companies’ debt and to reduce cash interest expense as part of General Electric Co.’s plan announced on April 10, which is to cut the size of its financial services businesses through the sale of most of General Electric Capital Corp.’s assets and to focus on continued investment and growth in GE’s industrial businesses.

Notes purchased in the tender offer will be retired.

Deutsche Bank AG, London Branch (+44 0 207 545 8011) is the global coordinator. Deutsche Bank (+44 0 207 545 8011), Barclays Bank plc (+44 0 203 134 8515), Royal Bank of Canada, Sydney Branch, RBC Dominion Securities Inc. and RBC Europe Ltd. are the dealer managers. RBC may be contacted at 416 842-6311.

Lucid Issuer Services Ltd. (+44 0 207 704 0880 or ge@lucid-is.com) is the global tender agent and information agent.

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