Sempra Energy, three subsidiaries obtain $4.13 billion of revolvers

By Marisa Wong

Madison, Wis., April 3 - Sempra Energy, Sempra Global and two of Sempra Energy's indirect utility subsidiaries, Southern California Gas Co. and San Diego Gas & Electric Co., entered into three separate revolving credit agreements on March 30, according to 8-K filings with the Securities and Exchange Commission.

Sempra Energy entered into a $1,067,000,000 five-year revolving credit agreement with a syndicate of 24 lenders with Citibank, NA as administrative agent.

The credit facility amends and restates Sempra Energy's four-year $1 billion credit agreement that was scheduled to expire in 2014.

The new facility, due March 30, 2017, provides for the issuance of up to $400 million of letters of credit.

Sempra Energy may request to increase the facility by up to $250 million.

Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy's credit ratings.

The facility also requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization of no more than 65% at the end of each quarter.

The holding company for utility subsidiaries is based in San Diego.

Sempra Global facility

Subsidiary Sempra Global entered into a $2,189,000,000 five-year revolving credit agreement with a syndicate of 25 lenders with Citibank, NA as administrative agent.

The facility, which expires March 30, 2017, amends and restates Sempra Global's four-year $2 billion facility that was scheduled to expire in 2014.

Subject to certain conditions, commitments may be lifted by $500 million.

Borrowings bear interest at benchmark rates plus a margin that varies with Sempra Energy's credit ratings.

Sempra Global's obligations under the new facility are guaranteed by the parent company.

Sempra Global's facility also requires Sempra Energy to maintain a ratio of total indebtedness to total capitalization of no more than 65% at the end of each quarter.

California utilities revolver

Southern California Gas and San Diego Gas & Electric entered into a five-year revolving credit agreement with a syndicate of 24 lenders. JPMorgan Chase Bank is the administrative agent.

The facility permits revolving credit borrowings by each utility of up to $658 million through March 30, 2017. The combined borrowing limit for both utilities is $877 million.

The facility also provides for the issuance of letters of credit on behalf of each utility, subject to a combined letter-of-credit commitment of $200 million for both utilities.

The two subsidiaries may, in one or more requests, increase the total amount of commitments by $700 million. Each utility's borrowing limit would increase by 75% of the increase in total commitments.

Borrowings bear interest at benchmark rates plus a margin that varies with the borrowing utility's credit rating.

The facility also requires each utility to maintain a ratio of total indebtedness to total capitalization of no more than 65% at the end of each quarter.

The revolver amends and restates the utilities' $800 million four-year credit agreement that was scheduled to expire in 2014.

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