Chicago, March 11 – Sempra priced $600 million of fixed-to-fixed reset rate junior subordinated notes due 2054 (Baa3/BBB-/BBB-) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The initial 6.875% coupon will reset for the first time on Oct. 1, 2029 and then every five years thereafter. The reset rate will be based on the five-year U.S. Treasury and a spread of 278.9 basis points.
The notes priced at 99.994.
The notes may be redeemed at par from 90 days before the first reset date to that date, and then on any interest payment date thereafter. The notes are also callable at par for a tax event or at 102 if a rating agency event occurs.
BofA Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the joint bookrunners.
Proceeds will be used for general corporate purposes, including repayment of commercial paper and potentially other debt.
Sempra is an energy services holding company based in San Diego.
| Issuer: | Sempra
|
| Amount: | $600 million
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| Issue: | Fixed-to-fixed reset rate junior subordinated notes
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| Maturity: | Oct. 1, 2054
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| Bookrunners: | BofA Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc.
|
| Senior co-managers: | BNP Paribas Securities Corp. and Credit Agricole Securities (USA) Inc.
|
| Co-manager: | Evercore Group LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 6.875% starting rate; resets on Oct. 1, 2029 to five-year Treasury plus 278.9 bps and then on five-year anniversaries going forward
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| Price: | 99.994
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| Call features: | At par from 90 days before Oct. 1, 2029 through Oct. 1, 2029; then at par on interest payment dates going forward
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| Trade date: | March 11
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| Settlement date: | March 14
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | SEC registered
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| Cusip: | 816851BS7
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