By Wendy Van Sickle
Columbus, Ohio, May 17 – Southern California Gas Co. priced a $1 billion issue of first mortgage bonds (Aa3/A+/AA-) in two tranches on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The sale includes $500 million of 5.2% bonds, series ZZ, due 2033 priced at 99.805 to yield 5.225%, or Treasuries plus 165 basis points.
A $500 million 5.75% mortgage bond, series AAA, due 2053 priced at 99.516 to yield 5.784%, or Treasuries plus 190 bps.
CIBC World Markets Corp., J.P. Morgan Securities LLC, Santander US Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are leading the sale, with Siebert Williams Shank & Co., LLC also listed as a bookrunner.
Proceeds will be used to repay outstanding debt and any remaining proceeds for other general corporate purposes. Such debt includes outstanding commercial paper bearing interest at rates of 5.06% annually or less and maturing at various dates in May 2023 and a term loan currently bearing interest at a rate of 5.7% and maturing on July 6. Proceeds from the term loan were used for payment of a portion of the costs relating to litigation because of the leak at its Aliso Canyon natural gas storage facility.
The natural gas distributor is based in Los Angeles.
| Issuer: | Southern California Gas Co.
|
| Amount: | $1 billion
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| Issue: | First mortgage bonds
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| Bookrunners: | CIBC World Markets Corp., J.P. Morgan Securities LLC, Santander US Capital Markets LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC and Siebert Williams Shank & Co., LLC
|
| Co-managers: | Mischler Financial Group, Inc. and Penserra Securities LLC
|
| Trustee: | U.S. Bank NA
|
| Counsel to issuer: | Latham & Watkins LLP and in-house
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | May 17
|
| Settlement date: | May 23
|
| Ratings: | Moody’s: Aa3
|
| S&P: A+
|
| Fitch: AA-
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| Distribution: | SEC registered
|
|
|
| 10-year bonds
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| Amount: | $500 million
|
| Maturity: | June 1, 2033
|
| Coupon: | 5.2%
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| Price: | 99.805
|
| Yield: | 5.225%
|
| Spread: | Treasuries plus 165 bps
|
| Make-whole call: | Make-whole call at Treasuries plus 25 bps until March 1, 2033, then a par call
|
| Cusip: | 842434CZ3
|
|
|
| 30-year bonds
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| Amount: | $500 million
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| Maturity: | June 1, 2053
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| Coupon: | 5.75%
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| Price: | 99.516
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| Yield: | 5.784%
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| Spread: | Treasuries plus 190 bps
|
| Make-whole call: | Treasuries plus 30 bps prior to Dec. 1, 2052, then callable at par
|
| Cusip: | 842434CY6
|
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