Published on 6/6/2022 in the Prospect News Investment Grade Daily.
New Issue: Pacific Gas prices $1.5 billion of first mortgage bonds in three parts
By Wendy Van Sickle
Columbus, Ohio, June 6 – Pacific Gas and Electric Co. priced $1.5 billion of first mortgage bonds (Baa3/BBB-/BBB-) in three tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $450 million of 4.95% three-year bonds at 99.882 to yield 4.993% with a spread of 205 basis points over Treasuries.
A $450 million tranche of 5.45% five-year bonds priced at 99.825 to yield 5.49%, or Treasuries plus 245 bps.
Pacific Gas sold $600 million of 5.9% 10-year bonds at 99.699 to yield 5.94%, or a spread of Treasuries plus 290 bps.
BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and Credit Suisse Securities (USA) LLC were the bookrunners.
The electric and natural gas utility is based in San Francisco.
| Issuer: | Pacific Gas and Electric Co.
|
| Amount: | $1.5 billion
|
| Issue: | First mortgage bonds
|
| Bookrunners: | BMO Capital Markets Corp., BNP Paribas Securities Corp., BofA Securities, Inc. and Credit Suisse Securities (USA) LLC
|
| Co-managers: | SMBC Nikko Securities America, Inc., Blaylock Van, LLC, Great Pacific Securities and Mischler Financial Group, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Trade date: | June 6
|
| Settlement date: | June 8
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| Three-year bonds
|
| Amount: | $450 million
|
| Maturity: | June 8, 2025
|
| Coupon: | 4.95%
|
| Price: | 99.882
|
| Yield: | 4.993%
|
| Spread: | Treasuries plus 205 bps
|
| Call features: | Make-whole until maturity at Treasuries plus 35 bps
|
| Cusip: | 694308KE6
|
|
|
| Five-year bonds
|
| Amount: | $450 million
|
| Maturity: | June 15, 2027
|
| Coupon: | 5.45%
|
| Price: | 99.825
|
| Yield: | 5.49%
|
| Spread: | Treasuries plus 245 bps
|
| Call features: | Make-whole until May 15, 2027 at Treasuries plus 40 bps, then par call
|
| Cusip: | 694308KF3
|
|
|
| 10-year bonds
|
| Amount: | $600 million
|
| Maturity: | June 15, 2032
|
| Coupon: | 5.9%
|
| Price: | 99.699
|
| Yield: | 5.94%
|
| Spread: | Treasuries plus 290 bps
|
| Call features: | Make-whole call before March 15, 2032 at Treasuries plus 45 bps; par call thereafter
|
| Cusip: | 694308KG1
|
|
|
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