Published on 2/16/2022 in the Prospect News Investment Grade Daily.
New Issue: PG&E prices $2.4 billion of first mortgage bonds in four parts
By Wendy Van Sickle
Columbus, Ohio, Feb. 16 – Pacific Gas and Electric Co. priced $2.4 billion of first mortgage bonds (Baa3/BBB-/BBB-) in four tranches on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $1 billion of 3.25% two-year bonds at 99.964 to yield 3.269% with a spread of 175 basis points over Treasuries.
A $400 million tranche of 4.2% seven-year bonds priced at 99.932 to yield 4.211%, or Treasuries plus 220 bps.
PG&E sold $450 million of 4.4% bonds due March 1, 2032 at 99.693 to yield 4.438%, or a spread of Treasuries plus 240 bps.
Also, $550 million of 5.25% bonds due March 1, 2052 were sold at 99.638 to yield 5.274% with a Treasuries plus 290 bps spread.
BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities, LLC, Mizuho Securities USA LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC were the bookrunners.
The electric and natural gas utility is based in San Francisco and plans to relocate its headquarters to Oakland, Calif., beginning in 2024.
| Issuer: | Pacific Gas and Electric Co.
|
| Amount: | $2.4 billion
|
| Issue: | First mortgage bonds
|
| Bookrunners: | BofA Securities, Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities, LLC, Mizuho Securities USA LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Loop Capital Markets LLC, SMBC Nikko Securities America, Inc., Apto Partners, LLC, Bancroft Capital, LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Feb. 16
|
| Settlement date: | Feb. 18
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Two-year bonds
|
| Amount: | $1 billion
|
| Maturity: | Feb. 16, 2024
|
| Coupon: | 3.25%
|
| Price: | 99.964
|
| Yield: | 3.269%
|
| Spread: | Treasuries plus 175 bps
|
| Call features: | Callable at par starting on Feb. 16, 2023
|
| Cusip: | 694308KA4
|
|
|
| Seven-year bonds
|
| Amount: | $400 million
|
| Maturity: | March 1, 2029
|
| Coupon: | 4.2%
|
| Price: | 99.932
|
| Yield: | 4.211%
|
| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole until Jan. 1, 2029 at Treasuries plus 35 bps, then par call
|
| Cusip: | 694308KB2
|
|
|
| 10-year bonds
|
| Amount: | $450 million
|
| Maturity: | March 1, 2032
|
| Coupon: | 4.4%
|
| Price: | 99.693
|
| Yield: | 4.438%
|
| Spread: | Treasuries plus 240 bps
|
| Call features: | Make-whole call before Dec. 1, 2031 at Treasuries plus 40 bps; par call thereafter
|
| Cusip: | 694308KC0
|
|
|
| 30-year bonds
|
| Amount: | $550 million
|
| Maturity: | March 1, 2052
|
| Coupon: | 5.25%
|
| Price: | 99.638
|
| Yield: | 5.274%
|
| Spread: | Treasuries plus 290 bps
|
| Call features: | Make-whole call before Sept. 1, 2051 at Treasuries plus 45 bps; par call thereafter
|
| Cusip: | 694308KD8
|
|
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