Chicago, Nov. 10 – Pacific Gas & Electric Co. sold $1.75 billion of first mortgage bonds (BBB-/BBB-) in three parts on Wednesday, according to a market source.
The company priced $300 million of one-year floating-rate notes at SOFR plus 115 basis points. The series is non-callable, according to a 424B5 filing with the Securities and Exchange Commission.
The second tranche is $900 million of 1.7% two-year notes that priced with a Treasuries plus 125 bps spread. The notes had initial talk in the 155 bps area. There will be a par call date for the bonds.
The final tranche was a $550 million add-on to the company’s 3.25% notes due June 1, 2031. The notes priced with a 158 bps spread over Treasuries versus talk in the 187.5 bps area.
The notes are being added on to the $450 million 3.25% bonds due 2031 issued on March 8, 2021. The 2031 bonds have a make-whole call at Treasuries plus 25 basis points. The notes can be redeemed any time after March 1, 2031 at par.
Barclays, Citigroup Global Markets Inc., MUFG and Wells Fargo Securities, LLC are joint bookrunning managers of the offering.
PG&E expects to use the proceeds to repay the $1.45 billion of floating-rate first mortgage bonds due Nov. 15. Remaining proceeds will be used for general corporate purposes, including the repayment of approximately $300 million under the company’s utility revolving credit facility.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Issue: | First mortgage bonds
|
| Amount: | $1.75 billion
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., MUFG and Wells Fargo Securities, LLC
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Cravath, Swaine & Moore LLP and Hunton Andrews Kurth LLP
|
| Trade date: | Nov. 10
|
| Ratings: | S&P: BBB-
|
| Fitch: BBB-
|
|
|
| Floaters
|
| Amount: | $300 million
|
| Tenor: | One year
|
| Coupon: | SOFR plus 115 bps
|
| Call features: | Non-callable
|
|
|
| 2023 notes
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| Amount: | $900 million
|
| Maturity: | Nov. 15, 2023
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| Coupon: | 1.7%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Par call at a certain date
|
| Price talk: | Treasuries plus 155 bps area
|
|
|
| Add-on
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| Amount: | $550 million
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| Maturity: | June 1, 2031
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| Coupon: | 3.25%
|
| Spread: | Treasuries plus 158 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until March 1, 2031; thereafter at par
|
| Price talk: | Treasuries plus 187.5 bps area
|
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