Published on 11/2/2015 in the Prospect News Investment Grade Daily.
New Issue: Pacific Gas & Electric sells $500 million of notes in new, reopened tranches
By Aleesia Forni
Virginia Beach, Nov. 2 – Pacific Gas & Electric Co. sold a $500 million offering of senior notes (A3/BBB/A-) in two parts on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The issue included a $200 million tap of the company’s 3.5% senior notes due June 15, 2025 priced at Treasuries plus 115 basis points. Pricing was at 101.358 to yield 3.33%.
The original $400 million was sold at Treasuries plus 115 bps on June 9.
Also, $450 million of 4.25% bonds due 2046 sold at 98.13 to yield 4.362%, or Treasuries plus 140 bps.
Both tranches came at the tight end of guidance.
BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC and Wells Fargo Securities LLC are 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: | BofA Merrill Lynch, Goldman Sachs & Co., RBC Capital Markets LLC and Wells Fargo Securities LLC
|
| Co-managers: | MUFG, SMBC Nikko, U.S. Bancorp Investments Inc., CastleOak Securities LP, Apto Partners LLC, Drexel Hamilton, Siebert Brandford Shank & Co. LLC
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| 10-year tap
|
| Amount: | $200 million
|
| Maturity: | June 15, 2025
|
| Coupon: | 3.5%
|
| Price: | 101.358
|
| Yield: | 3.33%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area, tightened from Treasuries plus 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to March 15, 2025, then callable at par
|
|
|
| 30-year bonds
|
| Amount: | $450 million
|
| Maturity: | March 15, 2046
|
| Coupon: | 4.25%
|
| Price: | 98.13
|
| Yield: | 4.362%
|
| Spread: | Treasuries plus 140 bps
|
| Price guidance: | Treasuries plus 145 bps area, tightened from Treasuries plus 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to Sept. 15, 2045, then callable at par
|
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