Chicago, March 8 – Southern California Gas Co. priced $700 million of 2.95% five-year notes at 99.525 to yield 3.051% (A2/A/A+) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a 125 basis points spread to the related benchmark Treasury.
The company has the option to redeem the notes with a Treasuries plus 20 bps make-whole premium until March 15, 2027. After that date, the notes are redeemable at par.
Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Samuel A. Ramirez & Co. Inc. are the bookrunners.
Proceeds will be used for working capital and general corporate purposes, which may include repayment of commercial paper and payment of a portion of civil litigation costs related to a natural gas leak at the company’s Aliso Canyon natural gas storage facility.
The natural gas distributor is based in Los Angeles.
| Issuer: | Southern California Gas Co.
|
| Amount: | $700 million
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| Issue: | Notes
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| Maturity: | April 15, 2027
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| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC and Samuel A. Ramirez & Co. Inc.
|
| Co-managers: | Cabrera Capital Markets LLC and MFR Securities, Inc.
|
| Counsel to issuer: | Latham & Watkins LLP
|
| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 2.95%
|
| Price: | 99.525
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| Yield: | 3.051%
|
| Spread: | Treasuries plus 125 bps
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| Call features: | Make-whole call at Treasuries plus 20 bps until March 15, 2027; thereafter at par
|
| Trade date: | March 8
|
| Settlement date: | March 14
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| Ratings: | Moody’s: A2
|
| S&P: A
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| Fitch: A+
|
| Distribution: | SEC registered
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| Cusip: | 842434CW0
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