PG&E plans four-part offering of first mortgage bonds

By Cristal Cody

Chicago, March 8 – Pacific Gas & Electric Co. intends to sell a four-part offering of first mortgage bonds (BBB-), according to a 424B5 filing with the Securities and Exchange Commission.

One part of the offering will have a floating-rate coupon, and three parts will have a fixed rate.

The floating-rate notes are expected to mature March 10, 2023 and the coupon will be based on a rate over Libor, according to a market source.

The first fixed-rate tranche due March 10, 2023 is being talked with a spread in the Treasuries plus 130 basis points area.

A fixed-rate tranche due June 1, 2031 is being talked with a spread in the Treasuries plus 190 bps area.

The final fixed-rate tranche due June 1, 2041 is being talked with a spread in the Treasuries plus 230 bps area.

Early redemption options will vary for each series.

BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and MUFG Securities Americas Inc. are bookrunners for the notes.

Proceeds will be used to prepay in entirety a 364-day term loan facility in the amount of $1.5 billion with outstanding borrowings standing at $1 billion as of March 5 and repay all of the $845 million of borrowings under a utility revolving credit facility. Any remaining proceeds will be used for general corporate purposes.

The electric and natural gas utility is based in San Francisco.

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