Published on 1/5/2023 in the Prospect News Investment Grade Daily.
New Issue: PG&E sells $1.5 billion of first mortgage bonds due 2033, 2053
By Mary-Katherine Stinson
Lexington, Ky., Jan. 5 – Pacific Gas & Electric Co. sold $1.5 billion of first mortgage bonds (Baa3/BBB-/BBB-) in two tranches, according to an FWP filed with the Securities and Exchange Commission.
The $750 million 6.15% 10-year first mortgage bonds priced at 99.739 to yield 6.185%, or at Treasuries plus 250 basis points.
The $750 million 6.75% 30-year first mortgage bonds priced at 99.5 to yield 6.789%, or at Treasuries plus 295 bps.
The 2033 notes are callable prior to Oct. 15, 2032, three months prior to maturity, at a make-whole premium of 40 bps over Treasuries while the 2053 notes are callable prior to July 15, 2052, six months prior to maturity, at a make-whole premium of 45 bps over Treasuries. After the par call dates, both series are callable at par plus interest.
Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC are the bookrunners.
The San Francisco-based utility company will use the proceeds for general corporate purposes and to repay outstanding borrowings under the utility's revolving credit facility.
| Issuer: | Pacific Gas & Electric Co.
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| Amount: | $1.5 billion
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| Issue: | First mortgage bonds
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| Bookrunners: | Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and Wells Fargo Securities, LLC
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| Co-managers: | Loop Capital Markets LLC, SMBC Nikko Securities America, Inc., BNY Mellon Capital Markets, LLC, CastleOak Securities, LP, Siebert Williams Shank & Co., LLC and Stern Brothers & Co.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Cravath, Swaine & Moore LLP and Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Trade date: | Jan. 4
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| Settlement date: | Jan. 6
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| 2033 bonds
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| Amount: | $750 million
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| Maturity: | Jan. 15, 2033
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| Coupon: | 6.15%
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| Price: | 99.739
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| Yield: | 6.185%
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| Spread: | Treasuries plus 250 bps
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| Call features: | Prior to Oct. 15, 2032 at a make-whole premium of 40 bps over Treasuries, after at par
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| Cusip: | 694308KJ5
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| 2053 bonds
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| Amount: | $750 million
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| Maturity: | Jan. 15, 2053
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| Coupon: | 6.75%
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| Price: | 99.5
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| Yield: | 6.789%
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| Spread: | Treasuries plus 295 bps
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| Call features: | Prior to July 15, 2052 at a make-whole premium of 45 bps over Treasuries, after at par
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| Cusip: | 694308KH9
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