Published on 11/28/2016 in the Prospect News Investment Grade Daily.
New Issue: Pacific Gas & Electric sells $650 million fixed-, floating-rate notes
By Cristal Cody
Eureka Springs, Ark., Nov. 28 – Pacific Gas & Electric Co. sold $650 million of senior notes (A3/BBB+/A-) in two tranches on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The $250 million tranche of one-year floating-rate notes priced at par to yield Libor plus 20 basis points. The rate will reset quarterly starting on Feb. 28, 2017.
The company sold $400 million of 4% notes due Dec. 1, 2046 at 98.164 to yield 4.107%, or 110 bps over Treasuries.
The tranches priced on the tight side of talk.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch and Mizuho Securities USA Inc. were the bookrunners.
Proceeds will be used to repay the company’s commercial paper, to redeem $160 million variable-rate pollution control bonds due Dec. 1, 2016 and for general corporate purposes.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Amount: | $650 million
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Mizuho Securities USA Inc.
|
| Co-managers: | CIBC World Markets Corp., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments Inc., Lebenthal & Co., LLC, Mischler Financial Group, Inc., Ramirez & Co., Inc.
|
| Trade date: | Nov. 28
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| One-year floaters
|
| Amount: | $250 million
|
| Maturity: | Nov. 30, 2017
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
| Call feature: | None
|
| Price guidance: | Libor plus 20 bps-25 bps
|
|
|
| 30-year notes
|
| Amount: | $400 million
|
| Maturity: | Dec. 1, 2046
|
| Coupon: | 4%
|
| Price: | 98.164
|
| Yield: | 4.107%
|
| Spread: | Treasuries plus 110 bps
|
| Call features: | Make-whole call before June 1, 2046 at greater of par or Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 110 bps-115 bps area
|
© 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.
