By Aleesia Forni and Andrea Heisinger
New York, June 12 - Pacific Gas & Electric Co. priced $750 million of senior notes (A3/BBB/A-) in two tranches on Wednesday, an informed source said.
The $375 million of 3.25% 10-year notes sold at 99.493 to yield 3.31% with a spread of Treasuries plus 110 basis points. Pricing was at the tight end of talk in the 115 bps area, plus or minus 5 bps.
A $375 million tranche of 4.6% 30-year bonds priced at 99.919 to yield 4.6% with a spread of 125 bps over Treasuries. The sale was done at the low end of guidance in the 130 bps area, plus or minus 5 bps.
Both tranches have a make-whole call at Treasuries plus 20 bps.
BofA Merrill Lynch, Citigroup Global Markets Inc., BNP Paribas Securities Corp. and CastleOak Securities LP were the bookrunners.
The company plans to use the proceeds from the offering to purchase up to $500 million of its outstanding 4.8% senior notes due March 1, 2014 and for general corporate purposes, including the repayment of a portion of the company's outstanding commercial paper.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc. (active), BNP Paribas Securities Corp., CastleOak Securities LP (passive)
|
| Co-managers: | Mizuho Securities USA Inc., U.S. Bancorp Investments Inc., Williams Capital Group LP, Great Pacific Securities, Kota Global Securities
|
| Trade date: | June 12
|
| Settlement date: | June 14
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: A-
|
|
|
| 10-year notes
|
| Amount: | $375 million
|
| Maturity: | June 15, 2023
|
| Coupon: | 3.25%
|
| Price: | 99.493
|
| Yield: | 3.31%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 115 bps area, plus or minus 5 bps
|
|
|
| 30-year bonds
|
| Amount: | $375 million
|
| Maturity: | June 15, 2043
|
| Coupon: | 4.6%
|
| Price: | 99.919
|
| Yield: | 4.6%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 130 bps area, plus or minus 5 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.
