Sempra Energy, subsidiaries close $6.19 billion of five-year revolvers

By Wendy Van Sickle

Columbus, Ohio, May 20 – Sempra Energy entered into an amended and restated five-year credit agreement on Friday with a syndicate of 23 lenders and Citibank, NA as administrative agent. The credit agreement consists of a $1.25 billion revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The facility also provides for the issuance of up to $500 million of letters of credit.

Sempra Energy may increase, in one or more requests, the aggregate amount of the commitments by $250 million.

Borrowings under the credit facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with Sempra Energy’s credit ratings.

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

No single lender has a commitment exceeding 6% of the facility amount, the filing noted.

The credit facility amends, restates and supersedes Sempra’s $1.25 billion amended and restated five-year credit agreement that was scheduled to expire in 2020.

Sempra Global revolver

Also on Friday, subsidiary Sempra Global entered into an amended and restated five-year credit agreement with a syndicate of 23 lenders and Citibank as administrative agent for a $3,185,000,000 revolver.

No single lender has a commitment exceeding 6% of the facility amount.

Borrowings under the facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with Sempra Energy’s credit ratings.

Subject to obtaining commitments from existing or new lenders, Sempra Global may increase, in one or more requests, the aggregate amount of the commitments by $750 million.

Sempra Global’s obligations under the credit facility are guaranteed by Sempra Energy.

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

The credit facility amends, restates and supersedes Sempra Global’s $3,185,000,000 five-year credit agreement that was scheduled to expire in 2020.

San Diego Gas revolver

Utility subsidiary San Diego Gas & Electric Co. also entered into a $1.5 billion five-year credit agreement on Friday.

JPMorgan Chase Bank, NA is the administrative agent for the syndicate of 23 lenders.

No single lender has a commitment exceeding 6% of the facility amount.

The credit facility provides for the issuance of up to $250 million of letters of credit.

The utility may increase, in one or more requests, the total commitments by $400 million.

Borrowings under the credit facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with the utility’s credit rating.

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

The credit facility replaces the amended and restated $1 billion five-year credit agreement that was available to both San Diego Gas and Southern California Gas Co. and was scheduled to expire in 2020. That credit facility was terminated.

SoCalGas revolver

Utility subsidiary Southern California Gas Co. entered into a $750 million five-year credit agreement on Friday.

JPMorgan Chase Bank is the administrative agent for the syndicate of 23 lenders.

No single lender has a commitment exceeding 6% of the facility amount.

The credit facility provides for the issuance of up to $250 million of letters of credit.

The utility may increase, in one or more requests, the total commitments by $200 million.

Borrowings under the credit facility, none of which are outstanding, would bear interest at the benchmark rates plus a margin that varies with the utility’s credit rating.

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

Exact pricing for the credit facilities was not disclosed in the 8-K filing.

Sempra is a natural gas utilities holding company based in San Diego.

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