Summary
Sempra Energy (SRE) announced on January 17, 2018, an expansion of its credit facilities, a move that enhances its financial flexibility. The company fully exercised the accordion feature on its Five Year Revolving Credit Facility, increasing its borrowing capacity by $250 million to a total of $1.25 billion. This expansion provides Sempra with greater resources for potential investments, working capital needs, or general corporate purposes. In addition to the parent company's facility, Sempra's subsidiary, Sempra Global, also expanded its Five Year Revolving Credit Facility. This subsidiary increased its borrowing capacity by $850 million, bringing its total facility size to $3.185 billion. Sempra Global's obligations under this facility are guaranteed by Sempra Energy, underscoring the parent company's commitment to its subsidiary's financial health. These credit facility increases, with no outstanding borrowings at the time of the filing, signal a proactive approach by Sempra to manage its liquidity and support its strategic growth initiatives.
Key Highlights
- 1Sempra Energy increased its Five Year Revolving Credit Facility borrowing capacity by $250 million, bringing the total to $1.25 billion.
- 2Sempra Global, a subsidiary, increased its Five Year Revolving Credit Facility borrowing capacity by $850 million, reaching a total of $3.185 billion.
- 3Both credit facilities maintain their maturity date of October 13, 2020.
- 4The increases were achieved by exercising the 'accordion' feature of the respective credit agreements, allowing for upsized commitments.
- 5Sempra Global's increased obligations are guaranteed by Sempra Energy.
- 6At the time of the filing, there were no outstanding borrowings under either the Sempra Energy or Sempra Global credit facilities.
- 7Amendments to both facilities also included specific representations related to ERISA and EU Bail-In provisions.