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General Electric (GE) Announces Tender Offers for Notes & Dividend
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General Electric Company (GE - Free Report) announced plans to reduce debts through tender offers to purchase the U.S. dollar, GBP-denominated debt and Euro-denominated debt securities. The tender offers are expected to expire on Dec 17, 2020.
In a separate release, the company communicated that its board of directors approved rewarding shareholders with a quarterly dividend payment.
It is worth noting here that the company’s shares have declined 1.41% on Friday, ending the trading session at $11.16.
Inside the Headlines
As noted, General Electric’s tender offer is applicable for two sets of securities that have been either issued by GE Capital UK Funding Unlimited Company, General Electric Capital Corporation or GE Capital European Funding Unlimited Company. These companies are subsidiaries of General Electric.
Principal amount of the three types of securities is $1,000 or €1,000 or £1,000. Securities purchased by the company will be retired and canceled.
The first set of securities for which tender offer has been floated include both the U.S. dollar-denominated and Euro-denominated securities. Notably, the U.S. dollar-denominated notes include 4.625% notes due 2021, 5.300% notes due 2021, 4.650% notes due 2021 and 3.150% notes due 2022. The Euro-denominated securities include floating-rate notes due 2021, 4.350% notes due 2021, 0.800% notes due 2022 and 5.980% notes due 2022.
Also, the second set of securities include the U.S. dollar-denominated floating rate notes due Mar 15, 2023, floating-rate notes due Apr 15, 2023, and 3.100% notes due 2023. Also, the set includes the Euro-denominated 2.625% notes due 2023 and the GBP-denominated 4.125% notes due 2023.
The move will enable General Electric to strengthen its balance sheet. The company targets to bring Industrial net debt/EBITDA ratio to less than 2.5 and GE Capital debt/equity ratio to less than 4, going forward. Exiting third-quarter 2020, General Electric’s borrowings were $79.5 billion, down 2.9% from $81.9 billion at the end of the second quarter.
With regard to the dividend payment, the company has been authorized to pay 1 cent per common share to its shareholders of record as of Dec 21, 2020. The payout will be done on Jan 25, 2021.
Zacks Rank, Share Price Performance and Earnings Estimates
General Electric currently has a market capitalization of $97.8 billion and a Zacks Rank #3 (Hold). Solid liquidity position, portfolio-restructuring measures and actions to lower debts are expected to aid the company in the quarters ahead. However, the pandemic-led challenges are concerning for the company.
In the past three months, the conglomerate’s shares have gained 83% as compared with the industry’s growth of 21.7%.
In the past 60 days, the Zacks Consensus Estimate for its earnings is pegged at 8 cents for the fourth quarter of 2020 and 5 cents for the first quarter of 2021, reflecting growth of 14.3% and no change from the respective 60-day-ago figures. Notably, the estimate for 2020 has improved from a loss of 5 cents to earnings of 4 cents in the past 2 months.
In the past 60 days, earnings estimates for these companies have improved for the current year. Also, earnings surprise for the last four reported quarters, on average, was 1.85% for 3M, 14.59% for Crane and 17.00% for Danaher.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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General Electric (GE) Announces Tender Offers for Notes & Dividend
General Electric Company (GE - Free Report) announced plans to reduce debts through tender offers to purchase the U.S. dollar, GBP-denominated debt and Euro-denominated debt securities. The tender offers are expected to expire on Dec 17, 2020.
In a separate release, the company communicated that its board of directors approved rewarding shareholders with a quarterly dividend payment.
It is worth noting here that the company’s shares have declined 1.41% on Friday, ending the trading session at $11.16.
Inside the Headlines
As noted, General Electric’s tender offer is applicable for two sets of securities that have been either issued by GE Capital UK Funding Unlimited Company, General Electric Capital Corporation or GE Capital European Funding Unlimited Company. These companies are subsidiaries of General Electric.
Principal amount of the three types of securities is $1,000 or €1,000 or £1,000. Securities purchased by the company will be retired and canceled.
The first set of securities for which tender offer has been floated include both the U.S. dollar-denominated and Euro-denominated securities. Notably, the U.S. dollar-denominated notes include 4.625% notes due 2021, 5.300% notes due 2021, 4.650% notes due 2021 and 3.150% notes due 2022. The Euro-denominated securities include floating-rate notes due 2021, 4.350% notes due 2021, 0.800% notes due 2022 and 5.980% notes due 2022.
Also, the second set of securities include the U.S. dollar-denominated floating rate notes due Mar 15, 2023, floating-rate notes due Apr 15, 2023, and 3.100% notes due 2023. Also, the set includes the Euro-denominated 2.625% notes due 2023 and the GBP-denominated 4.125% notes due 2023.
The move will enable General Electric to strengthen its balance sheet. The company targets to bring Industrial net debt/EBITDA ratio to less than 2.5 and GE Capital debt/equity ratio to less than 4, going forward. Exiting third-quarter 2020, General Electric’s borrowings were $79.5 billion, down 2.9% from $81.9 billion at the end of the second quarter.
With regard to the dividend payment, the company has been authorized to pay 1 cent per common share to its shareholders of record as of Dec 21, 2020. The payout will be done on Jan 25, 2021.
Zacks Rank, Share Price Performance and Earnings Estimates
General Electric currently has a market capitalization of $97.8 billion and a Zacks Rank #3 (Hold). Solid liquidity position, portfolio-restructuring measures and actions to lower debts are expected to aid the company in the quarters ahead. However, the pandemic-led challenges are concerning for the company.
In the past three months, the conglomerate’s shares have gained 83% as compared with the industry’s growth of 21.7%.
In the past 60 days, the Zacks Consensus Estimate for its earnings is pegged at 8 cents for the fourth quarter of 2020 and 5 cents for the first quarter of 2021, reflecting growth of 14.3% and no change from the respective 60-day-ago figures. Notably, the estimate for 2020 has improved from a loss of 5 cents to earnings of 4 cents in the past 2 months.
General Electric Company Price and Consensus
General Electric Company price-consensus-chart | General Electric Company Quote
Stocks to Consider
Three better-ranked stocks in the industry are 3M Company (MMM - Free Report) , Crane Co. (CR - Free Report) and Danaher Corporation (DHR - Free Report) . These companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, earnings estimates for these companies have improved for the current year. Also, earnings surprise for the last four reported quarters, on average, was 1.85% for 3M, 14.59% for Crane and 17.00% for Danaher.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>