Daily News: May 2, 2012

Bloomberg: GE Plots End Of $6.4 Billion Financing For Penske

Bloomberg notes in a story that the joint venture between GE Capital and companies controlled by Roger Penske, a member of GE’s board, plans to refinance $6.4 billion of borrowings over the next two years.

Bloomberg said a $700 million offering last month of unsecured bonds due in June 2019, used to finance an equity infusion, was the first step, according to a news release, Bloomberg said.

Bloomberg noted that the venture may also turn to asset-backed debt secured by its vehicles and leases as it seeks to “repay in full our debt to GE Capital as soon as reasonably practicable,” Penske said in the prospectus. It plans to end borrowing under its loan agreement with GE Capital, Bloomberg said.

After relying solely on GE Capital for financing since 1996, Penske Truck hired JPMorgan Chase to arrange a $1 billion loan and plans to tap the corporate bond market as borrowing costs reach record lows.

To view the entire Bloomberg story,
click here.

Previously on abfjournal.com

Penske Truck Leasing, GE Capital Extend Partnership, Tuesday, May 01, 2012