General Electric Co. (GE:US), the borrower with the most debt maturing in 2014 of any U.S. corporate issuer, sold $3 billion of bonds in a three-part offering through its finance unit.
GE Capital issued (GE:US) $1.5 billion of floating-rate securities due in two years to yield 23 basis points more than the three-month London interbank offered rate, according to data compiled by Bloomberg. It also split five-year portions between $1 billion of 2.3 percent debt to yield 57 basis points more than similar-maturity Treasuries and $500 million of floaters at 51 basis points over Libor. (US0003M)
The lending division had about $229 billion of debt, more than 20 times the amount owed at the parent level (GE:US), and repaid $3 billion yesterday, Bloomberg data show.
Today’s sale marked the 15th consecutive January in which GE held an offering for U.S. bond investors. The Fairfield, Connecticut-based maker of products from dishwashers to jet engines sold $15.4 billion of dollar-denominated notes last year as investment-grade corporate issuance reached a record $1.14 trillion, Bloomberg data show.
The finance unit’s unsecured debt is rated (GELK:US) A1 by Moody’s Investors Service and AA+ at Standard & Poor’s. A year ago, the business issued two-year floaters that paid 38 basis points more than three-month Libor, Bloomberg data show. Libor, the rate at which banks say they can borrow from each other, was set at 24 basis points today. A basis point is 0.01 percentage point.
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