Sempra Energy, subsidiaries close $6.7 billion of five-year revolvers

By William Gullotti

Buffalo, N.Y., Oct. 17 – Sempra Energy and two of its subsidiaries each signed new, five-year credit agreements on Oct. 14 with 23-lender syndicates, according to an 8-K filing with the Securities and Exchange Commission.

The filing specified that no single lender in any of the credit facilities has a commitment exceeding 6% of the facility amount.

Sempra Energy

Sempra’s facility is a $4 billion revolver scheduled to mature Oct. 14, 2027 with its syndicate led by Citibank, NA as administrative agent.

Subject to obtaining commitments from existing or new lenders and satisfaction of other conditions, the company may increase the commitments by an additional $1 billion in one or more requests.

The new facility has a sublimit of $200 million for letters of credit which, subject to conditions, may be increased to $500 million.

Borrowings under the credit facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with the company’s credit rating.

The facility also requires Sempra Energy to maintain at the end of each quarter a ratio of total debt to total capitalization of no more than 65%.

In connection with closing of the new facility, Sempra terminated its previous $1.25 billion five-year revolver and subsidiary Sempra Global’s $3,185,000,000 five-year revolver that it assumed in 2021. Both terminated facilities were scheduled to mature in 2024.

San Diego Gas revolver

Utility subsidiary San Diego Gas & Electric Co. also closed a new $1.5 billion credit agreement maturing Oct. 14, 2027.

As with its previous revolver, JPMorgan Chase Bank, NA is the administrative agent.

The credit facility provides for the issuance of up to $100 million of letters of credit which, subject to conditions, may be increased to $250 million.

The utility may increase the total commitments by up to $400 million.

No borrowings are outstanding under the credit facility. Any future borrowings would bear interest at the benchmark rates plus a margin that varies with the utility’s credit rating.

The facility also requires the utility to maintain at the end of each quarter a ratio of total debt to total capitalization of no more than 65%.

The credit facility replaces the $1.5 billion five-year credit agreement that was scheduled to expire in 2024, which was terminated.

SoCalGas revolver

Utility subsidiary Southern California Gas Co. signed a new $1.2 billion revolver, which also matures Oct. 14, 2027.

JPMorgan is also the administrative agent.

The revolver provides for the issuance of up to $150 million of letters of credit, which may be increased to $250 million.

The utility may increase total commitments by up to $300 million.

Borrowings under the credit facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with the utility’s credit rating.

The facility likewise requires the utility to maintain at the end of each quarter a ratio of total debt to total capitalization of no more than 65%.

The new revolver replaces and likewise terminates the utility’s previous $750 million agreement that would have matured in 2024.

Sempra is a natural gas utilities holding company based in San Diego.

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