San Diego Gas & Electric offers green first mortgage bonds

By Mary-Katherine Stinson

Lexington, Ky., Aug. 7 – San Diego Gas & Electric Co. is in the Monday market with an offering of green first mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission.

The series AAAA notes will have an optional make-whole redemption followed by an optional par call.

There is a mandatory par call in the case of a sale, release, the taking by eminent domain, or the purchase by public authority of the company’s electric distribution system in San Diego.

Listed lead bookrunners are Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC and U.S. Bancorp Investments, Inc. Loop Capital Markets LLC is a bookrunner.

U.S. Bank NA will be the trustee.

The company is using in-house counsel and Latham & Watkins LLP. Sidley Austin LLP is working as counsel for the bookrunners.

Proceeds will be allocated to finance or refinance investments made in new or existing eligible projects within 24 months prior and 36 months after the bonds’ issuance date, with no more than 50% of net proceeds allocated to refinance existing projects. Eligible projects fall within the categories of climate change adaptation, clean energy solutions and clean transportation.

The San Diego-based gas and electric utility is an indirect subsidiary of Sempra Energy.

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