By Cristal Cody
Eureka Springs, Ark., May 16 – San Diego Gas & Electric Co. priced $500 million of 2.5% first mortgage bonds at 99.675 to yield 2.537% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The series QQQ bonds (Aa2/A+/AA-) priced with a spread of 78 basis points over Treasuries.
Barclays, Citigroup Global Markets Inc., Loop Capital Markets LLC, MUFG and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used to redeem $105 million of outstanding 5% tax-exempt industrial development revenue bonds maturing in 2027, to repay about $200 million of outstanding commercial paper bearing interest at rates of 0.45% per year or less and maturing at various dates in May 2016 and for other general corporate purposes.
The public utility serves San Diego and southern Orange counties in California.
| Issuer: | San Diego Gas & Electric Co.
|
| Amount: | $500 million
|
| Maturity: | May 15, 2026
|
| Securities: | First mortgage bonds
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Loop Capital Markets LLC, MUFG and RBC Capital Markets LLC
|
| Co-managers: | CAVU Securities, LLC and Guzman & Co.
|
| Coupon: | 2.5%
|
| Price: | 99.675
|
| Yield: | 2.537%
|
| Spread: | Treasuries plus 78 bps
|
| Call feature: | Make-whole call before Feb. 15, 2026 at Treasuries plus 15 bps; par call thereafter
|
| Pricing date: | May 16
|
| Settlement date: | May 19
|
| Ratings: | Moody’s: Aa2
|
| S&P: A+
|
| Fitch: AA-
|
| Distribution: | SEC registered
|
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