General Electric Co. announced tender offers to repurchase existing debt worth up to $5 billion as part of its strategy to strengthen its balance sheet and reduce leverage.
The debt buyback offers include up to $2.5 billion for U.S. dollar-denominated notes and up to $2.5 billion of euro-denominated notes. The total size of the repurchase plan will not be increased, GE said.
The U.S. dollar-denominated debt that can be repurchased include 2.700% notes due 2022, 3.375% notes due 2024, 4.125% notes due 2042 and 4.500% notes due 2044.
The euro-denominated debt subject to the tender offer include 0.375% notes due 2022, 1.250% notes due 2023, 0.875% notes due 2025, 1.875% notes due 2027, 1.500% notes due 2029 and 2.125% notes due 2037.
The U.S. dollar-denominated debt and euro-denominated debt have $8 billion and €10.5 billion in principal amount outstanding, respectively.
The buyback offers will expire Oct. 9, unless extended or earlier terminated by GE.
Applicants who submit their bonds by Sept. 25 will receive an additional $50 or €50 for every $1,000 or €1,000 worth of debt sold back to the company.
Bondholders whose securities are accepted for repurchase will receive accrued interest on such securities.
J.P. Morgan Securities LLC, J.P. Morgan Securities PLC, BofA Merrill Lynch, Merrill Lynch International and Goldman Sachs & Co. LLC are acting as dealer managers for the tender offers, while D.F. King is serving as information and tender agent.
