New Issue: Pacific Gas sells $800 million 6.95% first mortgage bonds due 2034

By Wendy Van Sickle

Columbus, Ohio, Nov. 6 – Pacific Gas & Electric Co. priced $800 million of 6.95% first mortgage bonds due March 15, 2034 (Baa3/BBB-/BBB) at 99.75 to yield 6.986%, or a spread of 233 basis points over Treasuries, on Monday, according to an FWP filed with the Securities and Exchange Commission.

The mortgage bonds will feature a make-whole call and then a par call.

BNP Paribas Securities Corp., Mizuho Securities USA LLC and MUFG Securities Americas Inc. are the joint bookrunners.

Proceeds will be used to repay a portion of the $900 million 1.7% first mortgage bonds due Nov. 15, 2023 at maturity.

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

Issuer:	Pacific Gas & Electric Co.
Amount:	$800 million
Issue:	First mortgage bonds
Maturity:	March 15, 2034
Bookrunners:	BNP Paribas Securities Corp., Mizuho Securities USA LLC and MUFG Securities Americas Inc.
Co-managers:	SMBC Nikko Securities America, Inc., BNY Mellon Capital Markets, LLC, American Veterans Group, PBC, Penserra Securities LLC and Telsey Advisory Group LLC
Trustee:	Bank of New York Mellon Trust Co., NA
Counsel to issuer:	Hunton Andrews Kurth LLP
Counsel to underwriters:	Davis Polk & Wardwell LLP
Coupon:	6.95%
Price:	99.75
Yield:	6.986%
Spread:	Treasuries plus 233 bps
Call:	At par plus a make-whole amount based on Treasuries plus 35 bps until Dec. 1, 2033, then callable at par
Trade date:	Nov. 6
Settlement date:	Nov. 8
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB
Distribution:	SEC registered
Cusip:	694308KP1

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