By Aleesia Forni
Virginia Beach, Aug. 7 – Pacific Gas and Electric Co. priced an upsized $575 million issue of senior notes in two tranches on Thursday, according to market source and a FWP filing with the Securities and Exchange Commission.
The sale included $350 million of 3.4% 10-year notes priced at 99.925 to yield 3.409%, or Treasuries plus 98 basis points.
The company also priced a $225 million tap of its existing 4.75% senior notes due Feb. 15, 2044 with a spread of Treasuries plus 115 bps.
Pricing was at 106.042 to yield 4.38%.
The original $450 million issue priced at Treasuries plus 105 bps on Feb. 18.
The bookrunners were BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas and Electric Co.
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| Issue: | Senior notes
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| Amount: | $575 million, upsized from $500 million
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| Joint bookrunners: | BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC, Wells Fargo Securities LLC
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| Co-managers: | SMBC Nikko Securities America Inc., TD Securities (USA) LLC, The Williams Capital Group LP
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 18
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: BBB
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| Fitch: A-
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| Distribution: | SEC-registered
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|
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| 10-year notes
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| Amount: | $350 million
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| Maturity: | Aug. 15, 2024
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| Coupon: | 3.4%
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| Price: | 99.925
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| Yield: | 3.409%
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| Spread: | Treasuries plus 98 bps
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| Price talk: | Treasuries plus 105 bps area
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| Make-whole call: | Treasuries plus 15 bps prior to May 15, 2024, then callable at par
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| Add-on to 30-year bonds
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| Amount: | $225 million
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| Maturity: | Feb. 15, 2044
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| Coupon: | 4.75%
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| Price: | 106.042
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| Yield: | 4.38%
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| Spread: | Treasuries plus 115 bps area
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| Price talk: | Treasuries plus 120 bps area
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| Make-whole call: | Treasuries plus 20 bps prior to Aug. 15, 2043, then callable at par
|
| Total issue size: | $675 million, including $450 million priced at Treasuries plus 105 bps on Feb. 18
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