GE Commences Secondary Public Offering of Genworth
General Electric
GE today is commencing a secondary public offering of shares of the
Class A Common Stock of Genworth Financial, Inc. (Genworth, NYSE: GNW).
GE is offering up to 80.5 million Genworth shares, including shares subject to
the underwriters' over-allotment option. Concurrently with the offering,
Genworth will repurchase directly from GE $500 million of Genworth's Class B
Common Stock at the net price GE receives in the secondary offering. The
repurchase will be completed at the same time as, and is contingent upon, the
completion of the secondary public offering.
As previously announced, GE will use the proceeds to eliminate
'parent-supported' debt at GE Capital and enable GE Capital to increase the
dividend it pays GE from 10% of its earnings to 40% commencing in the second
quarter.
Upon completion of the offering, GE will own approximately 52% of Genworth's
common stock if the underwriters' over-allotment option is exercised in full. GE
expects, subject to market conditions, to reduce its ownership over the next two
years as Genworth transitions to full independence.
Genworth today filed an amended registration statement with the U.S. Securities
and Exchange Commission (SEC) relating to the secondary public offering.
The global coordinator and bookrunner is Morgan Stanley. JPMorgan and Merrill
Lynch & Co. are joint lead managers and bookrunners for the secondary offering.
Copies of the preliminary prospectus may be obtained from Morgan Stanley & Co.
Incorporated, 1585 Broadway, New York, New York 10036.
A registration statement relating to Genworth's Class A common stock has been
filed with the SEC but has not yet become effective. These securities may not be
sold, nor may offers to buy be accepted, prior to the time the registration
statement becomes effective. This announcement shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
these securities in any State in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
such State.
GE (NYSE: GE) is a diversified technology, media and financial services company
dedicated to creating products that make life better. From aircraft engines and
power generation to financial services, medical imaging, television programming,
and plastics, GE operates in more than 100 countries and employs more than
300,000 people worldwide. For more information, visit the company's Web site at
www.ge.com.
Caution Concerning Forward-Looking Statements
This document contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' or 'will.' Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, particular uncertainties
arise from the behavior of financial markets, including fluctuations in interest
rates and commodity prices, from future integration of acquired businesses, from
future financial performance of major industries which we serve, including,
without limitation, the air and rail transportation, energy generation and
healthcare industries, from unanticipated loss development in our insurance
businesses, and from numerous other matters of national, regional and global
scale, including those of a political, economic, business, competitive or
regulatory nature. These uncertainties may cause our actual future results to be
materially different than those expressed in our forward-looking statements. We
do not undertake to update our forward-looking statements.
CONTACT: General Electric, Fairfield
David Frail, 203-373-3387
david.frail@ge.com