New Issue: Pacific Gas sells $800 million of 3% seven-year first mortgage bonds

By Wendy Van Sickle

Columbus, Ohio, June 1 – Pacific Gas & Electric Co. priced $800 million of 3% seven-year first mortgage bonds (Baa3/BBB-/BBB-) at 99.509 to yield 3.078%, or a spread of Treasuries plus 180 basis points, on Tuesday, according to an FWP filed with the Securities and Exchange Commission.

Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the bookrunners.

Proceeds will be used for general corporate purposes, including repaying about $685 million of debt under the company's utility revolving credit facility.

The electric and natural gas utility is based in San Francisco.

Issuer:	Pacific Gas & Electric Co.
Amount:	$800 million
Description:	First mortgage bonds
Maturity:	June 15, 2028
Bookrunners:	Barclays, BofA Securities Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
Co-managers:	BMO Capital Markets Corp., Blaylock Van, LLC, MFR Securities, Inc. and Siebert Williams Shank & Co., LLC
Coupon:	3%
Price:	99.509
Yield:	3.078%
Spread:	Treasuries plus 180 bps
Call:	At par plus a make-whole amount based on Treasuries plus 30 bps until April 15, 2028, then callable at par
Trade date:	June 1
Settlement date:	June 3
Ratings:	Moody’s: Baa3
	S&P: BBB-
	Fitch: BBB-
Distribution:	SEC registered

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