GE completes $8.5 billion offering to finance GE HealthCare spinoff

Farma Darya

GE HealthCare's new logoGE (NYSE:GE) announced that its GE HealthCare subsidiary closed an offering of senior notes worth $8.5 billion.

The company earlier this month announced the offering in connection with the planned spinoff of GE HealthCare. It anticipates the spinoff to go through in the first week of January 2023.

According to a news release, GE’s offering includes $1 billion in 5.55% senior notes due in 2024. It also offers $1.5 billion in 5.6% senior notes due in 2025. The offering features $1.75 billion in 5.65% senior notes due in 2027.

Additionally, GE is offering $1.25 billion in 5.857% senior notes due in 2030 and $1.75 billion in 5.905% senior notes due in 2032. Finally, GE offered $1 billion in 6.377% senior notes due in 2052.

GE said the notes represent senior unsecured obligations of GE HealthCare. The company expects them to enable GE to pay down existing debt. On Nov. 8, GE announced a tender offer to buy up to $7 billion in its debt securities. After that, it anticipates the new GE HealthCare debt securities will pay down its outstanding debt over time.

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, GE said that GE HealthCare’s debt will include $10.2 billion in senior notes and term loans. The company also expects to transfer $5.2 billion in net pension and other postretirement plan liabilities to the spinoff.

GE HealthCare reported $13.5 billion in revenue for the first nine months of 2022. That’s a 3% increase from the same period a year ago.

GE completes $8.5 billion offering to help finance GE HealthCare spinoff

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