By Wendy Van Sickle
Columbus, Ohio, Aug. 7 – San Diego Gas & Electric Co. priced $600 million of 4.95% green first mortgage bonds, series AAAA, due Aug. 15, 2028 (A1/A/A) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 99.57 to yield 5.048%, or with a spread of 90 basis points over Treasuries.
The bonds will feature an optional make-whole call followed by an optional par call. The bonds are also subject to mandatory redemption at par in some cases.
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.
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.
| Issuer: | San Diego Gas & Electric Co.
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| Amount: | $600 million
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| Issue: | Green first mortgage bonds, series AAAA
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| Maturity: | Aug. 15, 2028
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| Joint bookrunners: | Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., Loop Capital Markets LLC
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| Co-managers: | AmeriVet Securities, Inc. and Samuel A. Ramirez & Co., Inc.
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| Trustee: | U.S. Bank NA
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| Counsel to issuer: | In-house counsel and Latham & Watkins LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 4.95%
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| Price: | 99.57
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| Yield: | 5.048%
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| Spread: | Treasuries plus 90 bps
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| Call features: | Optional make-whole call at Treasuries plus 15 bps prior to July 15, 2028; optional par call after that; mandatory redemption at par in some cases
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| Trade date: | Aug. 7
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| Settlement date: | Aug. 11
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| Ratings: | Moody’s: A1
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| S&P: A
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| Fitch: A
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| Distribution: | SEC registered
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| Cusip: | 797440CE2
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