GE Capital Flying High in 2012
GE Capital, an operating unit of General Electric Company (GE), recently announced that its Telecom, Media and Technology (:TMT) financing business completed 58 deals aggregating $3.7 billion during 2012.
The healthy business volume for corporate financing and private equity-backed transactions, despite a challenging macroeconomic environment, augurs well for the long-term perspective of the company and gives us confidence to remain bullish on it.
The TMT business generally addresses the financial needs of key growth sectors, such as cable, data centers, towers, metro fiber, TV, digital media and software. Some of the notable transactions that took place in the year include a $131 million and a $140 million recapitalization for Hoak Media LLC and JAB Wireless, respectively.
Hoak Media is a premier middle-market TV broadcaster in the U.S. operating in 13 different markets. GE Capital has a long-standing business association with Hoak Media, serving as its prime lender since 2007.
With a thorough understanding of the various regulations and industry cycles that are inherent in the TV sector, GE Capital brings on board a comprehensive industry knowledge and a deep insight in the broadcasting space that are sure to be a success recipe for Hoak Media.
JAB Wireless is a provider of fixed wireless high-speed internet and VoIP phone service to residential and business subscribers. In fourth quarter 2012, GE Capital served as a lead arranger and an administrative agent for a new $140 million credit facility for JAB Wireless in order to strengthen its liquidity. With such corporate financings since 2010, GE Capital has enabled this company to more than double its customer base and profitability.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world, competing with industry bigwigs such as Federal Signal Corp. (FSS), Tyco International Ltd. (TYC), and ITT Corporation (ITT).
With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content and industrial products, GE serves customers in more than 100 countries and employs more than 287,000 people worldwide.
Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions and GE Capital. General Electric currently has a Zacks Rank #3 (Hold).
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