Published on 6/9/2015 in the Prospect News Investment Grade Daily.
New Issue: Pacific Gas & Electric sells $500 million senior notes in new, reopened tranches
By Aleesia Forni
Virginia Beach, June 9 – Pacific Gas & Electric Co. sold $500 million of senior notes (A3/BBB+/A-) in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $400 million tranche of 3.5% 10-year notes sold at 99.365 to yield 3.576%, or Treasuries plus 115 basis points.
The company also priced a $100 million add-on to its existing 4.3% notes due March 15, 2045 at 94.769 to yield 4.635%, or Treasuries plus 145 bps.
The original $500 million issue priced at Treasuries plus 130 bps on Nov. 3.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities and Loop Capital Markets were the joint bookrunners.
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 Co.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Mizuho Securities, Loop Capital Markets
|
| Co-managers: | BNY Mellon Capital Markets LLC, CIBC World Markets Corp., TD Securities, Academy Securities, Blaylock Beal Van, LLC, MFR Securities, Inc.
|
| Trade date: | June 9
|
| Settlement date: | June 12
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | June 15, 2025
|
| Coupon: | 3.5%
|
| Price: | 99.365
|
| Yield: | 3.576%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to March 15, 2025, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $100 million
|
| Maturity: | March 15, 2045
|
| Coupon: | 4.3%
|
| Price: | 94.769
|
| Yield: | 4.635%
|
| Spread: | Treasuries plus 145 bps
|
| Total issue size: | $600 million, including $500 million priced Nov. 3, 2014 at 130 bps over Treasuries
|
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