(Corrects analyst's name in para 8)
By Christopher Reich
NEW YORK, Oct 1 (IFR) - General Electric launched a $7
billion sale of notes on Monday, taking advantage of prevailing
low rates in what will be the third-largest sale of corporate
debt in the US so far this year.
The Aa3/AA+ rated company is offering three-year,
10-year and 30-year notes to repay debt, including all or part
of $5 billion of 5% notes due 2013, as well as for general
GE price guidance is for the three-year notes to price at
Treasuries plus about 55 basis points (bps), the 10-year at
T+110bps and the 30-year at T+135 basis points.
Pricing is expected later on Monday. Barclays, Citigroup,
Deutsche Bank, Goldman Sachs, JP Morgan and Morgan Stanley are
the joint bookrunners.
It is the third-largest deal so far in what has been an
extremely active year in the US high-grade bond market, behind a
$7.5 billion deal from Anheuser-Busch InBev and a
$9.8 billion trade from United Technologies.
Corporations have been rushing to market ahead of the US
presidential election on November 6 and the so-called "fiscal
cliff" the country faces at the end of the calendar year.
They have also been taking advantage of near-record low
rates for raising funds. September was the biggest month of US
investment-grade issuance of the year, with more than $115.7
billion in deals.
"Given its strong cash-flow generating ability, GE is a
relatively infrequent issuer in the market," Morningstar analyst
Jeffrey Cannon said in a note.
He said the company had a "solid foundation for sustainable
(Reporting By Christopher Reich; Writing by Marc Carnegie and