Published on 2/18/2014 in the Prospect News Investment Grade Daily.
New Issue: PG&E prices upsized $900 million notes sale in 10-, 30-year tranches
By Aleesia Forni
Virginia Beach, Feb. 18 - Pacific Gas & Electric Co. sold an upsized $900 million two-part issue of senior notes (A3/BBB/A-) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The utility sold a $450 million issue of 3.75% 10-year notes at 105 basis points over Treasuries, or 99.901 to yield 3.762%.
A second tranche was $450 million of 4.75% notes due 2044 sold with a spread of 110 bps over Treasuries.
Pricing was at 99.573 to yield 4.777%.
J.P. Morgan Securities LLC, Morgan Stanley & Co., Ramirez & Co. Inc. and RBS Securities Inc. were the joint bookrunners.
Proceeds will be used to repay the company's 4.8% notes due March 1, 2014. Remaining proceeds will be used for general corporate purposes, including the repayment of commercial paper.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric
|
| Issue: | Senior notes
|
| Amount: | $900 million, upsized from $750 million
|
| Joint bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co., Ramirez & Co. Inc., RBS Securities Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, CIBC World Markets Corp., Loop Capital Markets LLC, U.S. Bancorp Investments, Inc., Blaylock Beal Van, LLC, Lebenthal & Co., LLC, MFR Securities, Inc., Mischler Financial Group, Inc.
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: A-
|
|
|
| Notes due 2024
|
| Amount: | $450 million
|
| Maturity: | Feb. 15, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.901
|
| Yield: | 3.762%
|
| Spread: | Treasuries plus 105 bps
|
|
|
| Notes due 2044
|
| Amount: | $450 million
|
| Maturity: | Feb. 15, 2044
|
| Coupon: | 4.75%
|
| Price: | 99.573
|
| Yield: | 4.777%
|
| Spread: | Treasuries plus 110 bps
|
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