Chicago, March 12 – Southern California Gas Co. priced $500 million of 5.6% first mortgage bonds due 2054 (Aa3/A+/AA-) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The series BBB bonds priced at 99.35 to yield 5.645%, or at Treasuries plus 133 basis points.
Any early redemption will have a Treasuries plus 20 bps make-whole premium until Oct. 1, 2053, six months before the maturity date when the notes may be redeemed at par.
BBVA Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC and R. Seelaus & Co., LLC are the joint bookrunners.
Proceeds will be used to repay outstanding debt and for other general corporate purposes. The outstanding debt consists of commercial paper that as of March 11 bore interest at rates of 5.4111% or less and matures at various dates in March 2024.
The Los Angeles-based public utility is an indirect subsidiary of Sempra, a California-based holding company with energy infrastructure investments in North America.
Issuer: | Southern California Gas Co.
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Amount: | $500 million
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Issue: | First mortgage bonds, series BBB
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Maturity: | April 1, 2054
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Bookrunners: | BBVA Securities Inc., J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Wells Fargo Securities, LLC, PNC Capital Markets LLC and R. Seelaus & Co., LLC
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Co-managers: | Cabrera Capital Markets LLC and CAVU Securities LLC
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Trustee: | U.S. Bank NA
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Counsel to issuer: | Latham & Watkins LLP and in-house counsel
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Counsel to underwriters: | Sidley Austin LLP
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Coupon: | 5.6%
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Price: | 99.35
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Yield: | 5.645%
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Spread: | Treasuries plus 133 bps
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Call features: | Make-whole call at Treasuries plus 20 bps until Oct. 1, 2053; thereafter at par
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Trade date: | March 12
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Settlement date: | March 18
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Ratings: | Moody’s: Aa3
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| S&P: A+
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| Fitch: AA-
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Distribution: | SEC registered
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Cusip: | 842434DA7
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