By Aleesia Forni
Virginia Beach, Nov. 7 - Pacific Gas and Electric Co. came to Wednesday's market to price $800 million of senior notes (A3/BBB/A-) in two tranches, according to a market source and an FWP filed with the Securities and Exchange Commission.
Both tranches priced at the tight end of talk.
A $300 million tranche of 3.85% 10-year notes were priced with a spread of Treasuries plus 123 basis points.
Pricing was at 99.819 to yield 3.872%.
The company also priced $500 million of 5.125% senior notes due 2043 at 133 bps over Treasuries, or 99.847 to yield 5.135%.
Barclays, Goldman Sachs & Co., RBC Capital Markets and Wells Fargo Securities were the joint bookrunners.
The company plans to use proceeds to repay $400 million of its 6.25% senior notes due Dec. 1, 2013. Remaining proceeds from the offering will be used for general corporate purposes, including to repay a portion of the company's outstanding commercial paper.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas and Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $800 million
|
| Joint bookrunners: | Barclays, Goldman Sachs & Co., RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Mitsubishi UFJ Securities (USA) Inc., TD Securities (USA) LLC, Samuel A. Ramirez & Co. Inc., E.J. De La Rosa & Co. Inc., Muriel Siebert & Co. Inc.
|
| Trade date: | Nov. 6
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: A-
|
|
|
| Notes due 2023
|
| Amount: | $300 million
|
| Maturity: | Nov. 15, 2023
|
| Coupon: | 3.85%
|
| Price: | 99.819
|
| Yield: | 3.872%
|
| Spread: | Treasuries plus 123 bps
|
| Price talk: | Treasuries plus 125 bps area
|
|
|
| Notes due 2043
|
| Amount: | $500 million
|
| Maturity: | Nov. 15, 2043
|
| Coupon: | 5.125%
|
| Price: | 99.847
|
| Yield: | 5.135%
|
| Spread: | Treasuries plus 133 bps
|
| Price talk: | Treasuries plus 135 bps area
|
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