- In order to extend its Industrial debt maturities and enhance its liquidity profile, GE is launching a strategic debt issuance to fund an immediate tender for GE bonds maturing through 2024. The combination of these transactions is expected to be leverage neutral.
- As part of its deleveraging plan, using proceeds from the BioPharma transaction, GE also repaid $6 billion of its intercompany loan to GE Capital on April 1, 2020.
- Using proceeds from this repayment, in order to accelerate its debt reduction, GE Capital today also is launching a tender targeting up to $9 billion of debt maturing in 2020. GE Capital separately repaid $4.7 billion of debt that matured in the first quarter of 2020.
GE Chairman and CEO H. Lawrence Culp, Jr., said, “With net proceeds of about $20 billion from the sale of BioPharma now in hand, we are taking swift actions to de-risk and de-lever our balance sheet and prudently manage our liquidity amid a challenging external environment. We continue to execute on our priorities, including solidifying our financial position by further reducing debt and improving our cash operations and management. We remain committed to achieving our leverage goals over time.”
At March 31, 2020, GE held consolidated cash, cash equivalents, and restricted cash of more than $47 billion, including approximately $34 billion in Industrial and more than $13 billion in Capital. As part of its normal financial management process, the Company is also refinancing a back-up credit facility that expires in 2021.
GE plans to hold its first-quarter earnings call on Wednesday, April 29, 2020, at 8:00AM ET, where it will share additional details.
NOTE: this is NOT the complete release.