GE Capital leads $ 1.3bn senior loan to Sotheby’s

Part of the deal includes a $485 million increase an asset-based credit line to fund the art auction’s finance business.

GE Capital has acted as the lead arranger in a $1.3bn senior credit facility extended to New York-based art auction house Sotheby’s, GE Capital said in a statement earlier today (18 June). The asset-based loan will be used to grow Sotheby’s finance business. The GE Capital unit is continuing to lend money amid the sell-off of the business.

Part of the deal includes a $485 million increase in the credit line. In August last year, GE Capital had been the collateral manager for an $850 million senior credit facility provided to Sotheby’s that included a $250 million increase in its credit line. Sotheby’s, with a market capitalization of $3.2 billion, is one of the world’s largest art business companies.

The asset-based loan is one of GE Capital’s largest deals this year. GE Capital Markets acted as the joint lead arranger and joint book runner on the credit facility.

In April this year,  GE had announced plans to sell GE Capital assets worth about $200 billion, that would include $74 billion commercial lending and leasing unit and its sponsor finance business GE Antares Capital, which announced it’d be sold to the Canada Pension Plan Investment Board (CPPIB) earlier this month. 

Earlier this week, GE Capital’s Healthcare Financial Services arranged a $175 million senior secured loan for Physiotherapy Corporation.

The GE Capital Corporate Finance arm is a mid-market lender for financing growth, acquisitions, balance sheet management and working capital. It provides asset-based, cash flow and structured loans and leases to US businesses in North America, Asia and Europe.