NBC Universal to offer senior unsecured notes in private placement

NBC Universal to sell senior unsecured notes

NEW YORK — General Electric Co. said Monday that its NBC Universal Inc. subsidiary plans to sell senior unsecured notes in a private placement to qualified institutional buyers.

The notes are part of the $9.1 billion of financing NBC Universal is raising as part of its combination with Comcast Corp.

Comcast agreed to buy a 51 percent NBC Universal from GE in December. The deal, worth $13.75 billion, is expected to be completed around the end of the year after it clears regulatory hurdles.

Later Monday, GE announced that NBC Universal had priced $5.1 billion worth of the senior notes.

Of the total, $900 million will have a 2.1 percent interest rate and are due in 2014; $1 billion will have a 2.875 percent interest rate and are due in 2016; $2 billion will have a 4.375 percent interest rate and are due in 2021; and $1.2 billion will have a 5.95 percent interest rate and are due in 2041.

The proceeds of the offering are to be paid to GE. However, if Comcast’s acquisition of NBC Universal is terminated or not completed by June 10, NBC Universal has agreed to redeem all of the notes at 101 percent of the principal plus interest.

The notes replace the $5.1 billion that NBC Universal would have borrowed under a bridge loan and term loan agreements as part of the $9.1 billion financing of the deal.

GE shares rose 2 cents in after-hours trade to $16.45 after falling 23 cents, or 1.4 percent, to close at $16.43 in the regular session Monday.