On November 7, 2024, GE HealthCare Technologies Inc. (GEHC, Financial) announced the commencement and pricing of an underwritten offering of 13,281,302 shares of its common stock. Notably, the company itself is not selling any shares and will not receive any proceeds from this offering or the associated debt-for-equity exchange.
Prior to the closing of the offering, GE Aerospace, a division of General Electric Company, is expected to exchange the GEHC shares for indebtedness held by Morgan Stanley Bank, N.A. This transaction involves Morgan Stanley & Co. LLC, which is acting as the selling stockholder in the offering. Following the debt-for-equity exchange, Morgan Stanley & Co. LLC plans to sell the GEHC shares to the underwriters involved in the offering.
The shares will be sold under an Underwriting Agreement dated November 7, 2024. The agreement includes GE HealthCare Technologies Inc., GE Aerospace, Morgan Stanley & Co. LLC as the selling stockholder, and J.P. Morgan Securities LLC, Citigroup Global Markets Inc., and Morgan Stanley & Co. LLC as underwriters.
This strategic move is part of GE HealthCare Technologies Inc.'s broader financial strategy, although the company will not directly benefit from the proceeds. Investors and stakeholders are advised to review the company's filings with the U.S. Securities and Exchange Commission for further details and risk factors associated with this offering.
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