July 18 General Electric Co's credit card
unit, Synchrony Financial IPO-SYF.N, said it expects to raise
up to $3.25 billion in a public offering of shares, in what is
expected to be the biggest U.S. IPO by a financial company this
The offering of 125 million shares is expected to be priced
at between $23 and $26 per share, the company said in a filing
with the U.S. Securities and Exchange Commission on Friday. (bit.ly/1nEs3gn)
At the top end of the expected range, the unit will be
valued at about $21.6 billion. Bankers had estimated the unit to
be worth between $16 billion and $18 billion.
Synchrony filed for a placeholder $100 million IPO in March
after GE announced plans in November to spin off the unit and
reduce its dependence on its financing arm, GE Capital.
Synchrony said on Friday that prior to the completion of the
offering, it will enter into a new bank term loan facility for
$8 billion and a $1.5 billion loan facility with a subsidiary of
GE has been reducing its reliance on GE Capital, which at
one point accounted for almost half of the company's profit. The
unit's rising funding costs during the 2008 financial crisis
nearly sank the entire company.
Synchrony is the largest provider of private label credit
cards in the United States and said it financed $93.9 billion in
GE Consumer Finance will see its stake dilute to 85 percent
from 100 percent after the offering.
Goldman Sachs & Co, JP Morgan, Citigroup and Morgan Stanley
are the lead underwriters for the IPO.
(Reporting by Tanya Agrawal; Editing by Saumyadeb Chakrabarty
and Maju Samuel)