By Andrea Heisinger
Omaha, Feb. 26 - Pacific Gas & Electric Co. priced $600 million of senior notes (A3/BBB+/A-) in two tranches Tuesday, an informed source said.
The company reopened its 5.625% notes due Nov. 30, 2017 to add $200 million. They priced at 101.55 to yield 5.417%, or Treasuries plus 155 basis points.
This brings the total issuance to $700 million, including $500 million sold Nov. 28, 2007.
The company also sold $400 million of 6.35% 30-year notes at 99.858 to yield 6.361%, or Treasuries plus 170 bps.
The tranche priced tighter than talk, which was for a yield of 175 bps more than Treasuries.
Bookrunners were Goldman Sachs & Co., Lehman Brothers Inc. and UBS Investment Bank.
Co-managers were Mizuho Securities USA Inc., Blaylock Robert Van, LLC and CastleOak Securities LP.
Proceeds will be used to repay outstanding commercial paper and for working capital.
The electricity and natural gas company is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Bookrunners: | Goldman Sachs & Co., Lehman Brothers Inc., UBS Investment Bank
|
| Co-managers: | Mizuho Securities USA Inc., Blaylock Robert Van, LLC and CastleOak Securities LP
|
| Trade date: | Feb. 26
|
| Settlement date: | March 3
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB+
|
| Fitch: A-
|
|
|
| 10-year tranche
|
| Amount: | $200 million reopened
|
| Maturity: | Nov. 30, 2017
|
| Coupon: | 5.625%
|
| Price: | 101.55
|
| Yield: | 5.417%
|
| Spread: | Treasuries plus 155 bps
|
| Total issuance: | $700 million, including $500 million sold Nov. 28, 2007
|
|
|
| 30-year tranche
|
| Amount: | $400 million
|
| Maturity: | 2038
|
| Coupon: | 6.35%
|
| Price: | 99.858
|
| Yield: | 6.361%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 175 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
