By Ronda Fears
Nashville, Tenn., April 25 - Sempra Energy sold an upsized $550 million of five-year mandatory convertibles in the upper DECS structure at par of 25 to yield 8.5% with a 22% initial conversion premium, via joint lead managers Merrill Lynch & Co. and Salomon Smith Barney. The deal, which was upsized from $450 million, sold at the aggressive end of pricing guidance.
San Diego, Calif.-based Sempra Energy, the holding company for San Diego Gas & Electric and Southern California Gas Co., intends to use proceeds to repay short-term debt, including debt used to finance the capital expenditure program for Sempra Energy Global Enterprises.
Terms of the new deal are:
Issuer: Sempra Energy
Amount: $550 million
Greenshoe: $50 million
Lead Managers: Merrill Lynch and Salomon Smith Barney
Maturity Date: 2007
Dividend: 8.5%
Issue Price: par, $25
Yield: 8.5%
Conversion Premium: 22%
Conversion Price: $30.524
Conversion Ratio: 0.819
Call: non-callable
Rating(s): Moody's: A2
| S&P: A
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| Settlement Date: | April 30
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