Sempra Energy greenshoe partially exercised, ups junior subordinated notes to $757.5 million

By Sarah Lizee

Olympia, Wash., June 26 – Underwriters for Sempra Energy’s $25-par junior subordinated notes (Baa2/BBB-/BBB-) due July 1, 2079 exercised a $57.5 million portion of their greenshoe, raising the total deal size to $757.5 million, according to an 8-K filing with the Securities and Exchange Commission.

As previously reported, on June 13 the company priced an upsized $700 million of the notes at par with a coupon of 5.75%.

The total size of the greenshoe was $105 million.

The deal 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.

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