Sempra to price fixed-to-fixed reset rate junior subordinated notes

By Marisa Wong

Los Angeles, March 11 – Sempra is offering fixed-to-fixed reset rate junior subordinated notes, according to a 424B5 filing with the Securities and Exchange Commission.

The coupon will reset on Oct. 1, 2029 and every five years after that to the five-year U.S. Treasury rate plus a fixed spread.

The notes will have an interest payment deferral option.

The notes will be callable in whole or in part at par (i) on any day during the period from and including the date that is 90 days prior to the first reset date and ending on and including the first reset date and (ii) on any interest payment date after the first reset date. The debentures will also be callable in whole at any time (i) at par if a tax event occurs and (ii) at 102 if a rating agency event occurs.

BofA Securities, Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the joint bookrunners.

U.S. Bank Trust Co., NA is the trustee.

Latham & Watkins LLP will act as counsel for the issuer. Sidley Austin LLP will act as counsel for the underwriters.

Proceeds will be used for general corporate purposes, including repayment of commercial paper and potentially other debt.

Sempra is an energy services holding company based in San Diego.

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