RLPC-General Electric Capital extends $21.5 bln loan

By Jacqueline Poh

NEW YORK, April 15 (BestGrowthStock) – General Electric Capital
Corp (GEA.N: ) is negotiating an amendment to an existing $21.5
billion global loan to extend its maturity by one year to May
2013, banking sources said on Thursday.

GECC, an affiliate of General Electric Co (GE.N: ), is
offering lenders a fee of 5 basis points (bps) to extend the
jumbo revolving credit’s maturity beyond its current date of
May 2012.

The commitment fee on any undrawn amount has also been
increased to 10 bps from 6 bps. Lenders said that it is
unlikely that GE will draw the loan.

The loan would continue to pay the same margin — 15 bps if
less than 50 percent were drawn, increasing to 20 bps if more
than 50 percent were drawn.

The deal was divided into various tranches for GECC’s
European, Hong Kong, Japan and U.S. subsidiaries including: GE
Capital European Funding Ltd, GE Capital (Hong Kong) Ltd, GE
Capital Leasing Corp and General Electric Capital Services
Inc.

The global deal was syndicated in the U.S., Europe, Hong
Kong and Japan and commitments were made in the respective
currencies.

The arrangers of the loan are Bank of America Merrill
Lynch, Citigroup and J.P. Morgan.

GECC last amended its revolving credit in April 2009. No
amendment fee was offered and pricing remained static.

Lenders have been asked to respond to the request by April
21.

Stock Report

(Reporting by Jacqueline Poh, editing by Gerald E. McCormick)

RLPC-General Electric Capital extends $21.5 bln loan