GE plans to raise $3 billion
The move is in response to a reverse inquiry from a long-term strategic investor
Stocks impacted: General Electric Co. (GE)
General Electric Co reopened portions of its prior debt offerings for $3 billion in total proceeds to boost its cash reserves amid the coronavirus crisis. The company expects to use these proceeds to reduce shorter-duration debt, including repaying a portion of its intercompany debt obligations to GE Capital and reducing GE Capital's debt. According to the industrial giant, the move is in response to a reverse inquiry from a long-term strategic investor. GE will continue to monitor its operations in the current environment and remains committed to achieving its leverage goals over time, the firm said. As a reminder, in late-May, GE CEO Larry Culp warned that free cash flow will be a lot worse than the $2.5 billion expected by Wall Street investors and that GE will end the year burning cash as well.
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