By Cristal Cody
Tupelo, Miss., March 7 – Pacific Gas & Electric Co. priced $600 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.
The company sold $400 million of 3.3% 10-year notes at 99.645 to yield 3.342%, or Treasuries plus 83 basis points, on the tight side of talk at Treasuries plus 85 bps area, plus or minus 2 bps.
Pacific Gas & Electric sold $200 million in a reopening of its 4% notes due Dec. 1, 2046 in line with guidance at a spread of 100 bps over Treasuries. The notes priced at 97.932 to yield 4.121%.
The company originally sold $400 million of the notes at 98.164 to yield 4.107%, or 110 bps over Treasuries, on Nov. 28, 2016. The total outstanding now is $600 million.
BNP Paribas Securities Corp., Goldman Sachs & Co., RBC Capital Markets Corp. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas & Electric Co.
|
| Amount: | $600 million
|
| Description: | Senior notes
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., RBC Capital Markets Corp. and Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, TD Securities (USA) LLC, Blaylock Robert Van, LLC and MFR Securities, Inc.
|
| Trade date: | March 7
|
| Settlement date: | March 10
|
| Ratings: | Moody’s: A3
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | March 15, 2027
|
| Coupon: | 3.3%
|
| Price: | 99.645
|
| Yield: | 3.342%
|
| Spread: | Treasuries plus 83 bps
|
| Price guidance: | Treasuries plus 85 bps area, plus or minus 2 bps
|
| Call features: | Make-whole before Dec. 15, 2026 at greater of par or Treasuries plus 15 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $200 million reopening
|
| Maturity: | Dec. 1, 2046
|
| Coupon: | 4%
|
| Price: | 97.932
|
| Yield: | 4.121%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 100 bps area
|
| Call feature: | Make-whole call until June 1, 2046 and then at par
|
| Original issue: | $400 million priced at 98.164 to yield 4.107%, or 110 bps over Treasuries, on Nov. 28, 2016
|
| Total outstanding: | $600 million
|
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