General Electric Capital Corp., the financial services arm of General Electric, has entered an interest rate swap to convert part of a recent USD2 billion fixed-rate note sale into a synthetic floating-rate liability. Peter Stack, spokesman in Fairfield, Conn., said the corporate periodically enters interest rate swaps to maintain a match between its fixed- and floating-rate assets and liabilities. He declined to specify what portion of the five-year note sale constituted the exchange, or what rate the electric giant paid or received.
General Electric pays an annual coupon of 3.5% on the notes and Banc of America Securities, Goldman Sachs and JPMorgan lead-managed the deal. Stack declined to name the counterparties for the swap.
