By James McCandless
San Antonio, June 13 – Sempra Energy sold an upsized $700 million of $25-par junior subordinated notes (Baa2/BBB-/BBB-) due July 1, 2079 at par with a coupon of 5.75%, according to an FWP filing with the Securities and Exchange Commission.
There is a $105 million greenshoe.
The deal, announced Thursday morning, was upsized from an initial $200 million and came in at the low end of talk for a coupon between 5.75% and 5.875%.
BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Lead managers are J.P. Morgan Securities LLC and RBC Capital Markets, LLC.
The notes are redeemable on or after Oct. 1, 2024 at par. Prior to that, they are redeemable following a tax event at par or a ratings agency event at 102%.
Sempra plans to use the proceeds to repay Sempra Global commercial paper, with any remaining net proceeds used for working capital and other general corporate purposes, which could include the repayment of debt.
The company plans to list the notes on the New York Stock Exchange.
Sempra is a San Diego-based diversified utilities company.
| Issuer: | Sempra Energy
|
| Description: | Junior subordinated notes
|
| Amount: | $700 million
|
| Greenshoe: | $105 million
|
| Maturity: | July 1, 2079
|
| Bookrunners: | BofA Securities, Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC
|
| Lead managers: | J.P. Morgan Securities LLC and RBC Capital Markets, LLC
|
| Co-managers: | Barclays, Credit Suisse Securities (USA) LLC, HSBC Securities (USA) Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, WR Securities, LLC and U.S. Bancorp Investments, Inc.
|
| Coupon: | 5.75%
|
| Price: | Par of $25
|
| Yield: | 5.75%
|
| Call: | On or after Oct. 1, 2024 at par; prior to that, following a tax event at par or a ratings agency event at 102%
|
| Pricing date: | June 13
|
| Settlement date: | June 26
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Listing: | NYSE
|
| Talk: | 5.75%-5.875%
|
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