GE Vernova closes $6 billion in credit facilities after GE spinoff

By Mary-Katherine Stinson

Lexington, Ky., April 2 – GE Vernova Inc., one of three spinoffs from General Electric Co. and now a standalone power and electricity business, signed for $6 billion in new credit facilities in connection with the separation, according to an 8-K filing with the Securities and Exchange Commission.

The credit facilities consist of a $3 billion five-year revolving credit facility and a $3 billion standby letter of credit and bank guarantee facility, which is also referred to as the trade finance facility.

The company, GE Albany Funding Unltd. Co. and GE Funding Operations Co., Inc. are listed as the borrowers on the revolver.

The revolver contains a $500 million sublimit for letters of credit.

Borrowings under the revolving facility are available in dollars and euros and will bear interest at either term SOFR or Euribor, dependent on the currency, plus an applicable margin based on the company’s senior unsecured long-term debt ratings.

The borrowers are required to pay customary facility fees based on the lenders’ commitments.

Borrowings under the revolver may be prepaid without a penalty, subject to customary breakage costs.

Under the trade finance facility, unpaid reimbursement obligations will bear interest at an alternate base rate, subject to a default rate if not paid when due after expiration of a grace period. In addition, the company will pay customary commitment fees based on the unutilized portion of the issuing banks commitments and issuance fees on outstanding issuances.

Each of the credit facilities mature on April 2, 2029.

The company may voluntarily reduce the commitments under the facilities, in whole or in part, subject to certain minimum reduction amounts.

The revolver was undrawn at closing. In the future, GE Vernova intends to use the revolving facility to fund its near-term intra-quarter working capital needs.

The company does not expect to utilize the trade finance facility.

JPMorgan Chase Bank, NA is the administrative agent for the revolving facility.

HSBC Bank USA, NA is the administrative agent for the trade finance facility.

Full details on the facilities will be filed with the company’s next quarterly report.

Based in Cambridge, GE Vernova launched as a standalone company on April 2. General Electric divided its businesses into three public companies, focused on the aviation, health care and energy sectors.

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