According to a news release, GE’s offering includes US$1 billion in 5.55% senior notes due in 2024. It also offers US$1.5 billion in 5.6% senior notes due in 2025. The offering features US$1.75 billion in 5.65% senior notes due in 2027.
Additionally, GE is offering US$1.25 billion in 5.857% senior notes due in 2030 and US$1.75 billion in 5.905% senior notes due in 2032. Finally, GE offered US$1 billion in 6.377% senior notes due in 2052.
General Electric Co.’s healthcare business will retain about US$ 15.4 billion in debt and pension liabilities when it is spun off in the first week of January.
It’s common for companies spinning out of larger parents to start out with debt. For example, spine and dental tech company ZimVie started out with US$500 million in debt when it spun out of Zimmer Biomet early this year.
The new stand-alone medtech giant intends to maintain a strong investment-grade credit rating. In a Form 10 registration statement filed with the SEC last month.
The company also expects to transfer US$5.2 billion in net pension and other postretirement plan liabilities to the spinoff.