PROSPECTUS Pricing Supplement No. 2013
Dated April 1, 1994 Dated October 19, 1994
PROSPECTUS SUPPLEMENT Rule 424(b)(3)-Registration Statement
No. 33-54009
Dated April 1, 1994 Rule 424(b)(3)-Registration Statement
No. 33-54011
GENERAL ELECTRIC CAPITAL CORPORATION
GLOBAL MEDIUM-TERM NOTES
(Floating Rate Notes)
Series: A X B __ C __ Trade Date: October 19, 1994
Principal Amount (in Specified Currency): US$9,200,000
Settlement Date (Original Issue Date): November 2, 1994
If Specified Currency is other than U.S. dollars,
equivalent amount in U.S. dollars: N/A
Maturity Date: November 2, 1995
Agent's Discount or Commission: 0.500%
Price to Public (Issue Price): 100.000%
Net Proceeds to Issuer (in Specified Currency): US$9,154,000
Interest Rate:
Interest Calculation:
__ Regular Floating Rate
__ Inverse Floating Rate
X Other Floating Rate: See "Additional Terms" below.
Interest Rate Basis:
__ CD Rate __ Commercial Paper Rate __ Federal Funds Rate
__ LIBOR __ Prime Rate __ Treasury Rate
X Other (as described below under "Additional Terms")
Spread (Plus or Minus): N/A
Spread Multiplier: N/A
Index Maturity: N/A
Index Currency: N/A
CAPITALIZED TERMS USED IN THIS PRICING SUPPLEMENT WHICH ARE DEFINED
IN THE PROSPECTUS SUPPLEMENT SHALL HAVE THE MEANINGS ASSIGNED TO
THEM IN THE PROSPECTUS SUPPLEMENT.
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(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Maximum Interest Rate: 19.50%
Minimum Interest Rate: 0.00%
Initial Interest Rate: The Interest Rate applicable to the first
quarterly Interest Reset Period will be determined two
Business Days prior to the first Interest Payment Date
scheduled to occur on February 2, 1995 as described under
"Additional Terms--Interest" below.
Interest Payment Period:
__ Annual __ Semi-Annual X Quarterly __ Monthly
Interest Payment Dates if other than as set forth in the
Prospectus Supplement: February 2, 1995, May 2, 1995, August 2,
1995 and November 2, 1995
Interest Reset Periods and Dates:
__ Daily __ Weekly __ Monthly
X Quarterly (See "Additional Terms--Interest" below).
__ Semiannually: months in which reset: N/A
__ Annually: month in which reset: N/A
Form of Notes:
X DTC registered __ non-DTC registered
The Notes will be available in book-entry form in minimum
denominations of US$100,000 and integral multiples of US$1,000 in
excess thereof.
Repayment, Redemption and Acceleration:
Initial Redemption Date: N/A
Initial Redemption Percentage: N/A
Optional Repayment Date: N/A
Annual redemption Percentage Reduction: N/A
Original Issue Discount
Amount of OID: N/A
Interest Accrual Date: N/A
Yield to Maturity: N/A
Initial Accrual Period OID: N/A
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Amortizing Notes:
Amortization Schedule: N/A
Dual Currency Notes:
Face Amount Currency: N/A
Optional Payment Currency: N/A
Designated Exchange Rate: N/A
Indexed Notes:
Currency Base Rate: N/A
Additional Terms:
Interest.
Interest on the Notes will be payable quarterly on February 2,
1995, May 2, 1995, August 2, 1995 and November 2, 1995 (each, an
"Interest Payment Date"). The interest rate applicable to each
Interest Period (as defined below) will be determined two Business
Days prior to each Interest Payment Date (each such date, a "Rate
Determination Date"). Each period commencing on an Interest
Payment Date (or the Original Issue Date in the case of the first
such period) up to but excluding the next succeeding Interest
Payment Date is referred to herein as an "Interest Period". The
interest rate applicable to each Interest Period will be determined
on the applicable Rate Determination Date based upon application of
the following formula:
LEVERAGE FACTOR X [1 - (98.35/Y)]
where "Y" equal the JPY Exchange Rate (as defined below) on the
applicable Rate Determination Date; provided, however, that in no
event shall the effective interest rate per annum applicable to the
Notes be less than 0.00% or more than 19.50% over the life of the
Notes.
For the purpose of computing the foregoing formula, the following
terms shall be assigned the following meanings:
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(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
"Leverage Factor" means a number which shall initially be equal
to .4480 for the first Interest Period and may be adjusted on each
Leverage Determination Date (as defined below) thereafter based on
the value of the JPY Exchange Rate on such Leverage Determination
Date. If the JPY Exchange Rate is less than or equal to Yen98.35
on any Leverage Determination Date, the Leverage Factor for the
immediately succeeding Interest Period will be increased by .4480;
the Leverage Factor will accumulate (up to a maximum of 1.7920)
each time the JPY Exchange Rate is less than or equal to Yen98.35
on a Leverage Determination Date. If the JPY Exchange Rate is
greater than Yen98.35 on any Leverage Determination Date, the
Leverage Factor applicable to the immediately succeeding Interest
Period shall be equal to .4480. The Leverage Factor may have a
value of .4480, .8960, 1.3440 or 1.7920. See "Certain Historical
and Other Information--Examples of Determination of Leverage
Factor" below.
"JPY Exchange Rate" means the midpoint rate for exchanging
Japanese Yen for U.S. Dollars appearing as of 10:00 a.m. (New York
City time) on any Rate Determination Date or Leverage Determination
Date (collectively, a "Determination Date"), on Reuters Page 1 FED
(as defined below) after the word "Yen"; provided, however, that if
on any Determination Date, no rate appears on Reuters Page 1 FED,
the Calculation Agent shall request each of five Reference Dealers
(as defined below) to provide the Calculation Agent with its offer
quotation for such rate as of 10:00 a.m. (New York City time), on
the applicable Determination Date. If at least two such quotations
are provided by the Reference Dealers, the JPY Exchange Rate
applicable to such Determination date shall be computed by the
Calculation Agent and shall be the arithmetic mean of such quoted
rates. If no rate appears on Reuters Page 1 FED on a Determination
Date and fewer than two quotations are provided by the Reference
Dealers, then the JPY Exchange Rate for such Determination Date
shall be the last available JPY Exchange Rate appearing on Reuters
Page 1 FED. Solely for the purpose of determining "Y" in the
formula above (and not for determining the Leverage Factor), the
JPY Exchange Rate shall have a minimum value of Yen98.35 and a
maximum value of Yen110.358923.
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
"Leverage Determination Date" means a date two Business Days
prior to the commencement of each Interest Period, being the date
on which the Leverage Factor applicable to such Interest Period
will be determined by the Calculation Agent; the Leverage
Determination Date for the immediately succeeding Interest Period
will occur the same date as the Rate Determination Date applicable
to the current Interest Period.
"Reference Dealers" mean leading money center banks selected in
good faith by the Calculation Agent for the purpose of providing
quotations on the JPY Exchange Rate.
"Reuters Page 1 FED" means the page designated as Page "1 FED"
on the Reuters Monitor Money Rates Service or such other page as
shall replace such page on such service for the purpose of
displaying the Federal Reserve Bank of New York's 10:00 a.m.,
Midpoint, New York Interbank Market--Consensus Rate.
"Calculation Agent" means Goldman, Sachs & Co.
The interest rate applicable to each Interest Period will be
computed on an absolute basis, meaning that the interest rate will
be multiplied by the aggregate principal amount of the Notes to
determine the amount of each quarterly interest payment,
notwithstanding the days elapsed during each Interest Period.
All percentage resulting from any calculation of the JPY Exchange
Rate and the interest rate applicable to the Notes will be rounded
to the nearest one hundred-thousandth of a percentage point, with
five one millionths of a percentage point rounded upwards (e.g.,
9.876545% would be rounded to 9.87655%), and all dollar amounts
used in or resulting from such calculations will be rounded to the
nearest cent (with one-half cent being rounded upward).
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(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Certain Historical and Other Information.
Historical Information.
The following table set forth certain historical information
concerning the midpoint Japanese Yen/U.S. Dollar exchange rate
appearing on Reuters Page 1 FED for the period from October 1991 to
October 1994. Fluctuations in the JPY Exchange Rate that have
occurred in the past are not necessarily indicative of fluctuations
that may occur in the future, which may be wider or more confined
than those that have occurred historically.
Japanese Yen/U.S. Dollar Exchange Rate*
Month/Year JPY Exchange Rate
(Yen per US$1.00)
Oct. 1991 133.18
Nov. 1991 130.33
Dec. 1991 129.90
Jan. 1992 123.93
Feb. 1992 125.78
Mar. 1992 129.50
Apr. 1992 134.30
May 1992 132.95
June 1992 127.19
July 1992 124.00
Aug. 1992 127.25
Sep. 1992 122.92
Oct. 1992 119.85
Nov. 1992 123.90
Dec. 1992 124.60
Jan. 1993 125.36
Feb. 1993 124.75
Mar. 1993 118.67
Apr. 1993 114.23
May 1993 110.92
June 1993 107.17
July 1993 106.55
Aug. 1993 104.73
Sep. 1993 105.28
Oct. 1993 106.52
Nov. 1993 108.57
Dec. 1993 108.73
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(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Japanese Yen/U.S. Dollar Exchange Rate*
(cont'd)
Month/Year JPY Exchange Rate
(Yen per US$1.00)
Jan. 1994 112.38
Feb. 1994 107.85
Mar. 1994 104.70
Apr. 1994 103.36
May 1994 101.69
June 1994 104.68
July 1994 99.05
Aug. 1994 98.92
Sep. 1994 99.75
Oct. 1994 99.88
(*) Source: Data in this table has been compiled by Goldman,
Sachs & Co. from Retuers Page 1 FED.
Hypothetical Quarterly Interest Rates.
The table below sets forth the interest rate which would apply
to a particular Interest Period if the JPY Exchange Rate had the
value appearing in the first column on the Rate Determination Date
applicable to such Interest Period given the four possible Leverage
Factors (.4480, .8960, 1.3440 and 1.7920). For example, if the JPY
Exchange Rate were equal to Yen104.35 on a Rate Determination Date
and the Leverage Factor applicable to such Interest Period were
.8960, then the hypothetical interest rate applicable to such
Interest Period would be equal to 5.15%. If the JPY Exchange Rate
were equal to Yen102.35 on a Rate Determination Date and the
Leverage Factor applicable to such Interest Period were .4480, than
the hypothetical interest rate applicable to such Interest Period
would be equal to 1.75%. In no circumstances will the interest
rate on the Notes be less than 0.00% or greater than 19.50%.
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Table of Hypothetical Quarterly Interest Rates**
JPY Exchange Rate Leverage Factor
(Yen per US$1.00) .4480 .8960 1.344 1.792
98.35 0.00%*** 0.00% 0.00% 0.00%
99.35 0.45% 0.90% 1.35% 1.80%
100.3 0.69% 1.79% 2.68% 3.57%
101.3 1.33% 2.65% 3.98% 5.30%
102.3 1.75% 3.50% 5.25% 7.00%
103.3 2.17% 4.33% 6.50% 8.67%
104.3 2.58% 5.15% 7.73% 10.30%
105.3 2.98% 5.95% 8.93% 11.91%
106.3 3.37% 6.74% 10.11% 13.48%
107.3 3.76% 7.51% 11.27% 15.02%
108.3 4.13% 8.27% 12.40% 16.54%
109.3 4.51% 9.01% 13.52% 18.03%
110.3 4.87% 9.74% 14.62% 19.49%
111.3 4.88% 9.75% 14.69% 19.50%
(**)Source: Goldman, Sachs & Co.
(***) The interest rate figures appearing in the table above have
been rounded to two decimal places for ease of reference; the
actual interest rate on the Notes will be rounded in accordance
with the rounding convention set forth on Page 3 of this Pricing
Supplement.
Examples of Determination of Leverage Factor.
The Leverage Factor applicable to the Interest Period commencing
on the Original Issue Date and ending on the first Interest Payment
Date scheduled to occur on February 2, 1995 will be .4480.
Thereafter, the Leverage Factor will be determined on the Leverage
Determination Date immediately preceding each Interest Period and
will be equal to the Leverage Factor for the preceding period plus
.4480 if the JPY Exchange Rate is less than or equal to Yen98.35
(subject to a maximum of 1.7920). If the JPY Exchange Rate is
greater than Yen98.35 on a Leverage Determination Date, the
Leverage Factor applicable to the immediately succeeding Interest
Period will be equal to .4480, irrespective of its level on such
Leverage Determination Date. The following two example demonstrate
the determination of the Leverage Factor applicable to each
Interest Period:
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(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Example 1: Assume the following values for the JPY Exchange
Rate were determined on the Leverage Determination Dates
applicable to the second, third and fourth quarterly Interest
Periods:
Second Interest Period = Yen9.75
Third Interest Period = Yen97.60
Fourth Interest Period = Yen100.35
The Leverage Factor applicable to the first Interest Period will
be equal to .4480 (irrespective of the value of the JPY Exchange
Rate). The Leverage Factor applicable to the Second Interest
Period will also equal .4480 because the JPY Exchange Rate on
the Leverage Determination Date applicable to such Interest
Period was greater than Yen98.35. The Leverage Factor
applicable to the Third Interest Period will equal .8960 because
the JPY Exchange Rate was less than or equal to Yen98.35 (.4480
+ .4480 = .8960). The Leverage Factor applicable to the Fourth
Interest Period will be equal to .4480 because the JPY Exchange
Rate was greater than Yen98.35 on the Leverage Determination
Date applicable to such Interest Period.
Example 2: Assume the following values for the JPY Exchange
Rate were determined on the Leverage Determination Dates
applicable to the second, third and fourth quarterly Interest
Periods:
Second Interest Period = Yen98.20
Third Interest Period = Yen98.30
Fourth Interest Period = Yen99.45
The Leverage Factor applicable to the first Interest Period will
be equal to .4480 (irrespective of the value of the JPY Exchange
Rate). The Leverage Factor applicable to the Second Interest
Period will equal .8960 because the JPY Exchange Rate on the
Leverage Determination Date applicable to such Interest Period
was less than or equal to Yen98.35 (.4480 + .4480 = .8960). The
Leverage Factor applicable to the Third Interest Period will
equal 1.3440 because the JPY Exchange Rate on the Leverage
Determination Date applicable to such Interest Period was less
than or equal to Yen98.35 (.8960 + .4480 = 1.3440). The
Leverage Factor applicable to the Fourth Interest Period will
equal .4480 because the JPY Exchange Rate was greater than
Yen98.35 on the Leverage Determination Date applicable to such
Interest Period.
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
Certain Investment Considerations.
An investment in the Notes entails significant risks that are not
associated with similar investments in a conventional fixed-rate
debt security. The secondary market for the Notes will be affected
by a number of factors independent of the creditworthiness of the
Company and the value of the JPY Exchange Rate, including, but not
limited to, the volatility of the JPY Exchange Rate, the time
remaining to the Maturity Date and market interest rates. No
established secondary market exists for the Notes. Neither the
Company nor the Agent referred to below under "Plan of
Distribution" can provide any assurance that there will be
secondary market liquidity with respect to the Notes.
Potential purchasers of the Notes should be aware that if the JPY
Exchange Rate is not greater than Yen98.35 per US$1.00 on any Rate
Determination Date, no interest will be payable on the Notes for
the related Interest Period. Potential purchasers of the Notes
should also be aware that the formula used to determine the
interest rate contains a leverage factor which could magnify the
impact increases and decreases in the JPY Exchange Rate will have
on the interest rate payable on the Notes.
Prospective investors who consider purchasing the Notes should
reach an investment decision only after carefully considering the
suitability of the Notes in the light of their particular
circumstances. Investors should also consider the tax consequences
of investing in the Notes. See "Certain U.S. Federal Income Tax
Considerations" in this Pricing Supplement.
Certain U.S. Federal Income Tax Considerations.
The following information supplements the statements contained
in the Prospectus Supplement under the caption "United States Tax
Considerations -Tax Consequences to United States Holders".
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
The Notes have a maturity of not more than one year and thus will
be treated as short-term notes for federal income tax purposes.
Generally, an accrual basis taxpayer (and certain other holders) is
required to accrue interest earned on a short-term note and a cash
basis taxpayer is required to include in gross income interest
payments made on each Interest Payment Date. However, the Notes
may be subject to proposed Treasury regulations concerning
contingent debt instruments (the "Contingent Payment Regulations")
and Treasury regulations concerning foreign currency transactions
(the "Foreign Currency Regulations"). The application and priority
of the Foreign Currency Regulations and the Contingent Payment
Regulations is not entirely clear because the Foreign Currency
Regulations reserve as to the treatment of certain obligations that
are classified as contingent debt instruments and the adoption of
the Contingent Payment Regulations in their current form is
uncertain.
It is possible that the application of the Foreign Currency
Regulations and/or the Contingent Payment Regulations may cause
timing and character differences with respect to income, gain, or
loss reported on a Note as compared to the character and timing of
income, gain or loss on a Note had such regulations not applied.
Prospective purchasers of the Notes that would be subject to U.S.
federal income taxation on the income or gain in respect of such
Notes are urged to consult their own tax advisors with regard to
the application of the Foreign Currency Regulations, the Contingent
Payment Regulations and of general U.S. federal income tax law to
their particular situations as well as any tax consequences of an
investment in the Notes arising under the law of any other taxing
jurisdiction.
Plan of Distribution.
The Notes are being purchased by Goldman, Sachs & Co.
(hereinafter referred to as the "Underwriter") pursuant to the
terms of a Terms Agreement dated October 19, 1994, as principal, at
the public offering price of 100.00% less an underwriting discount
equal to 0.500% of the aggregate principal amount of the Notes.
The Underwriter has advised the Company that it proposes initially
to offer the Notes to the public at the public offering price of
100.00% and to certain dealers at such price less a concession not
in excess of .500% of the principal amount of the Notes.
<PAGE>
(Floating Rate Notes)
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Pricing Supplement No. 2013
Dated October 19, 1994
Rule 424(b)(3)-Registration Statement
No. 33-54009
Rule 424(b)(3)-Registration Statement
No. 33-54011
The Underwriter and any dealers that participate with the
Underwriter in the distribution of the Notes may be deemed to be
underwriters, and any discounts or commission received by them and
any profit on the resale of Notes by them may be deemed to be
underwriting compensation.
The Company has agreed to indemnify the Underwriter against and
contribute toward certain liabilities, including liability under
the Securities Act of 1933, as amended.
