Southern California Gas plans $500 million green first mortgage bonds

By Cristal Cody

Chicago, Nov. 7 – Southern California Gas Co. is in the market with $500 million of fixed-rate green first mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission and details from a market source.

The notes will have a Nov. 15, 2052 maturity date and are being talked in the Treasuries plus 230 basis points to 235 bps area, according to the source.

The series YY bonds will have a make-whole call and then a par call option.

BBVA Securities Inc., Citigroup Global Markets Inc., Credit Agricole Securities (USA) Inc., MUFG Securities Americas Inc. and SMBC Nikko Securities America, Inc. are leading the sale.

Great Pacific Securities is also listed as a joint bookrunner.

Citigroup is the sustainability structuring agent.

U.S. Bank NA will be the trustee.

Latham & Watkins LLP is advising the company for legal matters. Sidley Austin LLP is working for the bookrunners.

Proceeds will be used for eligible projects aimed at pollution prevention and control, green buildings and clean transportation.

The natural gas distributor is based in Los Angeles.

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