GE Capital extends tender offers, increases payments for some notes

By Angela McDaniels

Tacoma, Wash., June 1 - General Electric Capital Corp. extended the expiration date and initial consent date for some of its tender offers to 5 p.m. ET on June 19 from May 29 and increased the offered payment for some of the notes, according to a company news release.

Tender offers for nearly 30 series of notes began on March 5. The company extended the offers for the five series of notes for which it has not yet received enough consents to amend the indentures.

These five series of notes are GE Capital's 8.3% notes due Sept. 20, 2009, floating-rate notes due Aug. 1, 2024, floating-rate notes due Feb. 1, 2050, floating-rate notes due April 1, 2050 and floating-rate notes due Dec. 1, 2051.

The company increased the tender offer payment for the floating-rate notes to $1,020 per $1,000 principal amount, which includes a $30 early participation fee, from par and the consent consideration to 25 basis points per year from 20 bps per year. The consent consideration will be added to the notes' coupons.

Holders may tender their notes or deliver consents.

The payment on offer for the 8.3% notes remains $1,030 per $1,000 principal amount, including a $10 consent fee.

As of 5 p.m. ET on May 29, holders had tendered $146.95 million, or 58.78%, of the 8.3% notes; $925,000, or 53.62%, of the floating-rate notes due 2049; $3.29 million, or 54.08%, of the floating-rate notes due Feb. 1, 2050; $6.17 million, or 60.56%, of the floating-rate notes due April 1, 2050; and $5.13 million, or 45.59%, of the floating-rate notes due 2051.

As previously reported, the company has already received enough consents to amend its $450 million of 8.125% guaranteed subordinated notes due May 15, 2012; $82.72 million of floating-rate notes due Sept. 1, 2048; $21.77 million of floating-rate notes due Jan. 1, 2049; $28.55 million of floating-rate notes due Nov. 1, 2049; $11.15 million of floating-rate notes due Feb. 1, 2050; $14.49 million floating-rate notes due May 1, 2050; $19.06 million of floating-rate notes due Nov. 1, 2050; $17.42 million of floating-rate notes due Oct. 1, 2053; and $15.35 million of floating-rate notes due May 1, 2051.

GE Capital has also received the consents needed for the following notes, which were considered as a single class for obtaining consents: the $100 million of 8.31% notes due April 13, 2009; $50 million of 7.75% notes due June 9, 2009; $100 million of 7.5% notes due June 15, 1009; $10 million of 7.94% notes due Dec. 10, 2012; $5 million of 8.96% notes due July 15, 2009; $5 million of 9.19% notes due July 16, 2009; $6.85 million of floating-rate notes due Dec. 15, 2035; $24.21 million of floating-rate notes due May 15, 2036; $19.78 million of floating-rate notes due May 28, 2036; $7.91 million of floating-rate notes due Sept. 1, 2054; $10,000 of floating-rate notes due June 28, 2055; $4.05 million of floating-rate notes due June 30, 2055; $100 million of floating-rate notes due Aug. 30, 2055; and $22.32 million of floating-rate notes due Sept. 8, 2055.

On April 2, GE Capital said it waived the requirement that it must obtain consents from holders of a majority of each note series.

The company is soliciting consents to, among other things:

• Sell, assign and transfer to the company all right, title and interest in any tendered notes;

• Waive any and all other rights for tendered notes; and

• Release and discharge the company from any and all claims related to the notes.

Citi (800 558-3745) is the dealer manager. Global Bondholder Services Corp. (866 807-2200) is the information agent.

GE Capital is the funding arm of General Electric Co. and is based in Stamford, Conn.

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