Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  General Electric Company    GE

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

General Electric Company : GE Selling $3 Billion Bond Deal; Success Could Spur More Issuance

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/24/2012 | 08:04pm CEST

--General Electric selling two-part bond deal

--Strong demand has deal "well oversubscribed"

--Other issuers waiting for stability, clarity from Fed

 
   By Patrick McGee 
   Of  
 

General Electric Co. (GE) is single-handedly demonstrating that buyers are comfortable scooping up newly issued corporate debt.

GE is selling $1 billion of floating-rate notes due in two years, giving investors 0.70 percentage point above the three-month London interbank offered rate, as well as $2 billion of five-year fixed-rate bonds at 1.5 points above Treasurys, according to a term sheet seen by Dow Jones Newswires.

Originally, only the five-year note was on offer. A banker working on the deal said it was "well oversubscribed" and motivated the company to add another tranche.

The GE deal is the first high-grade bond to hit the primary market this week, following the two slowest weeks of new-issuance in 2012. The lull follows one of the busiest quarters on record.

Syndicate managers say investors have cash to deploy for the right companies, but borrowers have been hesitant to issue debt this month given the volatile backdrop. Today's climate is more favorable--Markit's CDX North America Investment-Grade Index, a proxy for risk, improved 1.3% in early trading--but most companies are still residing on the sidelines until the Federal Reserve offers more clarity Wednesday on the direction of monetary policy.

"Issuers are looking for more stable ground before they tap the market," said Tim Cox, executive director of debt capital markets at Mizuho Securities. "Issuers like where Treasurys are, but they need more of a positive tone" to feel enticed into the market.

April's flight to quality has enabled corporate bonds to deliver a 1.10% total return so far this month, even as spreads to Treasurys have climbed 12 basis points to 190, their widest in two months, according to the Barclays U.S. investment-grade index. Corporate yields have been pulled down 8 basis points to 3.32%, as of Monday, just 5 basis points from the multi-decade low reached in early March.

Cox said a good experience for GE could "absolutely" improve confidence for other companies to issue debt.

New volume this month totaled just $26.2 billion, according to Dealogic data Monday. Syndicate desks were expecting more like $50 billion for the month, but companies have been in no rush after issuing more than $23 billion, on average, in each week of the first quarter.

April is typically slow because of earnings-related blackout periods.

"We're coming out of blackout so I think a lot of accounts are waiting on the edge of their seats for new deals," Cox added. "We're on the cusp to seeing the floodgates open," but global instability has shut down opportunistic borrowing.

-By Patrick McGee, Dow Jones Newswires; 212-416-2382; [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GENERAL ELECTRIC COMPANY
10/22 GENERAL ELECTRIC : Sharjah Ruler discusses scientific cooperation with General E..
10/21 Federal Contracts Awarded to Companies in Ohio (Oct. 21)
10/21 LOCKHEED MARTIN : Federal Contracts Awarded by Federal Agencies in Alabama (Oct...
10/21 GENERAL ELECTRIC : GE Healthcare Receives Carequality Certification, Advancing D..
10/21DJGENERAL ELECTRIC : GE Vows Changes As View Darkens -- WSJ
10/21 For GE and its shareholders, a lost decade and a half
10/20DJGENERAL ELECTRIC : New GE Chief Slashes Forecasts, Plans to Exit $20 Billion in ..
10/20DJGENERAL ELECTRIC : New GE Chief Slashes Forecasts, Plans to Exit $20 Billion in ..
10/20 GENERAL ELECTRIC COMPANY (LON : GEC) Files An 8-K Results of Operations and Fina..
10/20 GENERAL ELECTRIC COMPANY : GE files Form 8-K
More news
News from SeekingAlpha
10/22 A Bear On GE Reassesses
10/22 QUARTERLY REVIEW OF DIVGRO : Q3-2017
10/22 Friday GE Fiasco Exposes A Fluff Fueled Market
10/22 General Electric's 'Unacceptable' Q3 2017 Results
10/20 General Electric's (GE) CEO John Flannery on Q3 2017 Results - Earnings Call ..
Financials ($)
Sales 2017 125 B
EBIT 2017 15 781 M
Net income 2017 11 569 M
Debt 2017 69 599 M
Yield 2017 4,04%
P/E ratio 2017 18,53
P/E ratio 2018 15,72
EV / Sales 2017 2,21x
EV / Sales 2018 1,97x
Capitalization 206 B
Chart GENERAL ELECTRIC COMPANY
Duration : Period :
General Electric Company Technical Analysis Chart | GE | US3696041033 | 4-Traders
Technical analysis trends GENERAL ELECTRIC COMPANY
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 27,1 $
Spread / Average Target 14%
EPS Revisions
Managers
NameTitle
John L. Flannery Chairman & Chief Executive Officer
Daniel Janki Treasurer & Senior VP-Global Operations
Jeffrey S. Bornstein Vice Chairman & Chief Financial Officer
Jim Fowler Chief Information Officer
Victor Abate Chief Technology Officer & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)
GENERAL ELECTRIC COMPANY-24.59%206 319
3M22.78%132 077
SIEMENS1.24%116 080
HONEYWELL INTERNATIONAL23.97%110 549
ILLINOIS TOOL WORKS INC.25.33%53 353
JARDINE STRATEGIC HOLDINGS LIMITED30.60%48 319