By Devika Patel and Cristal Cody
Knoxville, Tenn., Nov. 12 – Pacific Gas & Electric Co. offered further details, including the price and yield, about a $1.75 billion sale of first mortgage bonds (Baa3/BBB-/BBB-) that priced in three parts on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $300 million of one-year floating-rate notes at SOFR plus 115 basis points. The series is non-callable and priced at par.
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. These notes priced at 99.877 to yield 1.763%.
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. These notes priced at 101.011 to yield 3.124%.
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 bps. The notes can be redeemed any time after March 1, 2031 at par.
Barclays and Citigroup Global Markets Inc. are the bookrunners, and MUFG, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp. and Mizuho Securities USA Inc. are the lead 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, 2021. 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 and Citigroup Global Markets Inc.
|
| Lead managers: | MUFG, Wells Fargo Securities, LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp. and Mizuho Securities USA Inc.
|
| Co-managers: | SMBC Nikko Securities America Inc., BNY Mellon Capital Markets LLC, Loop Capital Markets LLC, AmeriVet Securities, Inc. and Penserra 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
|
| Settlement date: | Nov. 15
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
|
|
| Floaters
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| Amount: | $300 million
|
| Maturity: | Nov. 14, 2022
|
| Coupon: | SOFR plus 115 bps
|
| Price: | Par
|
| Yield: | SOFR plus 115 bps
|
| Call features: | Non-callable
|
| Cusip: | 694308JX6
|
|
|
| 2023 notes
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| Amount: | $900 million
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 1.7%
|
| Price: | 99.877
|
| Yield: | 1.763%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Callable at par on or after Nov. 15, 2022
|
| Price talk: | Treasuries plus 155 bps area
|
| Cusip: | 694308JY4
|
|
|
| Add-on
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| Amount: | $550 million
|
| Maturity: | June 1, 2031
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| Coupon: | 3.25%
|
| Price: | 101.011
|
| Yield: | 3.124%
|
| 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
|
| Total amount: | $1 billion, including $450 million issued March 8, 2021
|
| Cusip: | 694308JT5
|
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