• Aligns with GE’s Strategy to Create Simpler, More Valuable Industrial Company;
• Represents Last Major U.S. Platform Transaction in GE Capital Transformation;
• GE Capital’s Announced Sales Now Total Approximately US$180 Billion (ENI).
The combined transactions represent ending net investment (ENI) of approximately US$1.4 billion as of first quarter 2016 and are collectively expected to release approximately US$0.2 billion of capital to GE. The transactions are expected to close in the third quarter this year.
Under these agreements, each buyer will acquire assets based on the regional headquarters location of the respective Borrowers. First Horizon National Corporation, a Tennessee-based bank with assets of approximately $27 billion, will acquire assets in the Southwest and Southeast. Wintrust Financial Corporation, an Illinois-based bank with approximately $23 billion in assets, will acquire assets in the Midwest and part of the West. Finally, Sterling National Bank, which is headquartered in New York and has approximately $13 billion in assets, will acquire assets in the East. The remainder of assets in the West will be sold separately. Further details on the transaction terms are not being disclosed.
“As we continue to execute on our strategy to sell GE Capital’s assets that are not linked to GE, the sale of these restaurant financing assets represents our last major U.S. platform transaction,” said GE Capital Chairman and CEO Keith Sherin. “We are pleased to reach separate agreements with three strong buyers that will be able to continue to serve our customers and restaurant brands as they continue to grow,” he added.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.
Since the announcement in April 2015, GE Capital has signed agreements for approximately US$180 billion and has closed approximately US$156 billion of those. In total, GE plans to sell approximately $200 billion of GE Capital businesses worldwide and expects to be largely complete with the process by the end of 2016. GE Capital expects to deliver about $35 billion of dividends to GE under this plan, subject to regulatory approval.
Barclays and Moelis & Company served as financial advisors to GE. Hogan Lovells served as transaction counsel to GE.
GE (ge.com) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry.
GE’s Investor Relations website at ge.com/investor and our corporate blog at gereports.com, as well as GE’s Facebook page and Twitter accounts, including [.]GE_Reports, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.
Investor Contact: Matt Cribbins; P: +1 203-373-2424 - E: matthewg.cribbins[.]ge.com.
Caution Concerning Forward-Looking Statements:
This document contains "forward-looking statements" that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.