Pacific Gas sells $1.45 billion one-year floaters in high-grade market

By Devika Patel

Knoxville, Tenn., Nov. 12 – Primary activity in the investment-grade bond market was quiet on Thursday with only one deal pricing.

San Francisco-based Pacific Gas & Electric Co., an electric and natural gas utility, priced $1.45 billion of one-year floating-rate first mortgage bonds.

The notes priced at Libor plus 137.5 basis points and were sold at par.

BofA Securities Inc., Mizuho Securities USA Inc., MUFG and Wells Fargo Securities LLC were the bookrunners.

Proceeds will be used for general corporate purposes, including repaying debt under the company's accounts receivable facility and its revolving credit facility.

Also, on late Tuesday evening, New York’s Verizon Communications Inc., a telecommunications company, priced $12 billion of fixed-rate notes (/BBB+/A-) in five parts.

The company issued $2 billion of 0.85% five-year notes priced at 99.99.

There was $2.25 billion of 1.75% notes due Jan. 20, 2031 priced at 99.545.

The company priced $3 billion of 2.65% 20-year notes priced at 99.907.

Verizon issued $2.75 billion of 2.875% 30-year notes priced at 99.74.

There were $2 billion of 3% 40-year notes priced at 99.124.

BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.

Proceeds will be used for general corporate purposes, which may include acquisitions, and, depending on market conditions, the repayment of outstanding debt.

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