Sempra Energy, subsidiaries amend, restate $4.21 billion in revolvers

By Marisa Wong

Morgantown, W.Va., Oct. 14 – Sempra Energy entered into an amended and restated five-year credit agreement on Oct. 13 with a syndicate of 20 lenders and Citibank, NA as administrative agent. The credit agreement consists of a $1 billion revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility also provides for the issuance of up to $400 million of letters of credit.

Sempra Energy may increase, in one or more requests, the aggregate amount of the commitments by $250 million.

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

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%.

No single lender has a commitment exceeding 7% of the facility amount, the filing noted.

The credit facility amends, restates and supersedes Sempra’s $1.07 billion amended and restated five-year credit agreement that was scheduled to expire in 2017.

Sempra Global revolver

Also on Tuesday, subsidiary Sempra Global entered into an amended and restated five-year credit agreement with a syndicate of 20 lenders and Citibank, NA as administrative agent for a $2.21 billion revolver.

No single lender has a commitment exceeding 7% of the facility amount.

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

Subject to obtaining commitments from existing or new lenders, Sempra Global may increase, in one or more requests, the aggregate amount of the commitments by $977.5 million.

Sempra Global’s obligations under the credit facility are guaranteed by Sempra Energy.

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%.

The credit facility amends, restates and supersedes Sempra Global’s $2.19 billion five-year credit agreement that was scheduled to expire in 2017.

San Diego Gas revolver

Utility subsidiaries San Diego Gas & Electric Co. and Southern California Gas Co. also entered into an amended and restated five-year credit agreement on Tuesday.

JPMorgan Chase Bank, NA is the administrative agent for the syndicate of 20 lenders.

No single lender has a commitment exceeding 7% of the facility amount.

The credit facility permits revolving credit borrowings by each utility of up to $750 million through Oct. 13, 2020, subject to a combined borrowing limit for both utilities of $1 billion.

It also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter-of-credit commitment of $250 million for both utilities.

The utilities may increase, in one or more requests, the total commitments by $250 million. In this case, each utility’s individual borrowing limit would increase by 75% of the amount of the increase of the aggregate commitments.

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

The facility also requires each 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 amends, restates and supersedes the utilities’ combined $877 million five-year credit agreement that was scheduled to expire in 2017.

Exact pricing for the three restated credit facilities was not disclosed in the 8-K filing.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.