By Wendy Van Sickle
Columbus, Ohio, March 28 – Pacific Gas & Electric Co. priced $750 million of 6.7% 30-year first mortgage bonds (Baa3/BBB-/BBB) at 99.641 to yield 6.728%, or a spread of 295 basis points over Treasuries, on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The sustainability mortgage bonds will feature a make-whole call and then a par call.
BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and Wells Fargo Securities, LLC are the joint bookrunners with Wells Fargo as sustainability structuring agent.
Proceeds will be used to finance or refinance, in whole or in part, new or existing eligible green projects, addressing renewable energy, clean transportation, energy efficiency and pollution prevention and control; or eligible social projects relating to socioeconomic advancement and empowerment.
Pending full allocation of proceeds, the company expects to use funds to repay borrowings outstanding under its utility revolving credit facility. As of March 23, borrowings under the revolver totaled about $1.22 billion.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Amount: | $750 million
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| Issue: | First mortgage bonds
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| Maturity: | April 1, 2053
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| Bookrunners: | BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | SMBC Nikko Securities America, Inc., Blaylock Van, LLC, Drexel Hamilton, LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Davis Polk & Wardwell LLP
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| Coupon: | 6.7%
|
| Price: | 99.641
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| Yield: | 6.728%
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| Spread: | Treasuries plus 295 bps
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| Call: | At par plus a make-whole amount based on Treasuries plus 45 bps until Oct. 1, 2052, then callable at par
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| Trade date: | March 28
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| Settlement date: | March 30
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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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| Cusip: | 694308KK2
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