Sempra Energy to price fixed-, floating-rate notes in seven parts

By Devika Patel

Knoxville, Tenn., Jan. 9 – Sempra Energy intends to offer notes in seven tranches (BBB+), according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be sold in five fixed-rate tranches and two floating-rate tranches, with the floating-rate tranches due in 2019 and 2021 and the fixed-rate tranches due in 2020, 2023, 2028, 2038 and 2048.

The 2019 floaters are non-callable, and the 2021 floaters may be called at par after one year. The 2020 fixed-rate notes have a make-whole call. The 2023, 2028, 2038 and 2048 fixed-rate notes feature a make-whole call and then a par call.

RBC Capital Markets Corp., Morgan Stanley & Co. LLC and Barclays are the bookrunners for all of the notes.

In addition, BBVA Securities Inc. is a bookrunner for the 2028 notes; HSBC Securities (USA) Inc. is the bookrunner for the 2048 notes; Santander Investment Securities Inc. is the bookrunner for the 2023 notes and Societe Generale is the bookrunner for the 2038 notes.

BBVA Securities, HSBC Securities, Santander Investment Securities and Societe Generale are co-managers for all of the tranches for which they are not a bookrunner.

Proceeds will be used to finance a portion of the company’s planned merger with Energy Future Holdings Corp., or for general corporate purposes, including the voluntary redemption of the company’s mandatory convertible preferred stock.

Sempra is a San Diego-based electricity and natural gas utility and infrastructure company.

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