By Andrea Heisinger
New York, Nov. 13 - Pacific Gas and Electric Co. priced $600 million of senior notes (A3/BBB+/) in two tranches Thursday, market sources said.
The $400 million tranche of 6.25% five-year notes priced at 99.258 to yield 6.424%, or Treasuries plus 410 basis points.
The company also reopened its 8.25% notes due Oct. 15, 2018 to add $200 million. The reopened notes priced at 104.475 to yield 7.598%, or Treasuries plus 395 bps. Total issuance is now $800 million, including $600 million priced Oct. 16 at 455.7 bps over Treasuries.
Both tranches priced tighter than price talk, which was 412.5 bps for the five-year notes and 400 bps for the 10-year notes.
All of the notes have a make-whole redemption option of Treasuries plus 50 bps.
Bookrunners were J.P. Morgan Securities Inc., RBS Greenwich Capital and Morgan Stanley & Co. Inc.
Co-managers were Wells Fargo Securities, Loop Capital Markets and the Williams Capital Group.
Proceeds will be used to repay all or a portion of the company's senior notes due March 1, 2009 and for general corporate purposes.
The electric and natural gas company is based in San Francisco.
| Issuer: | Pacific Gas and Electric Co.
|
| Issue: | Senior notes
|
| Total amount: | $600 million
|
| Bookrunners: | J.P. Morgan Securities Inc., RBS Greenwich Capital, Morgan Stanley & Co. Inc.
|
| Co-managers: | Wells Fargo Securities, Loop Capital Markets, the Williams Capital Group
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 18
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 1, 2013
|
| Coupon: | 6.25%
|
| Price: | 99.258
|
| Yield: | 6.424%
|
| Spread: | Treasuries plus 410 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 412.5 bps
|
|
|
| 10-year notes
|
| Amount: | $200 million reopened
|
| Maturity: | Oct. 15, 2018
|
| Coupon: | 8.25%
|
| Price: | 104.475
|
| Yield: | 7.598%
|
| Spread: | Treasuries plus 395 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 400 bps
|
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