8-KOther EventsExhibits & Filings

SEMPRA 8-K Report, Corporate Update (Sep 24, 2018)

Filed September 24, 2018For Securities:SRESREA

Summary

This 8-K filing reports on the successful closing of a public offering by Southern California Gas Company (SoCalGas), a subsidiary of Sempra Energy. SoCalGas issued $550 million in aggregate principal amount of 4.30% First Mortgage Bonds, Series VV, due in 2049. The net proceeds to the company, after deducting underwriting discounts but before other expenses, were approximately 99.08% of the principal amount, indicating a favorable issuance for the company. These new bonds will mature on January 15, 2049, and carry a coupon rate of 4.30% per annum, with interest payments made semi-annually. The offering was registered under Sempra Energy's existing Form S-3 registration statement. This debt issuance likely supports SoCalGas's ongoing operational needs and capital expenditures, providing long-term financing at a fixed rate.

Key Highlights

  • 1Southern California Gas Company (SoCalGas) successfully closed a public offering of $550 million in 4.30% First Mortgage Bonds, Series VV.
  • 2The bonds have a long maturity of January 15, 2049.
  • 3The interest rate on the new bonds is 4.30% per annum, payable semi-annually.
  • 4Proceeds to SoCalGas were approximately 99.08% of the principal amount after underwriting discounts.
  • 5The offering was registered under Sempra Energy's existing Form S-3 registration statement.
  • 6The issuance of these bonds provides long-term debt financing for SoCalGas.

Frequently Asked Questions

The primary purpose of this filing was to report the closing of a public offering and sale of $550 million in First Mortgage Bonds by Southern California Gas Company, a subsidiary of Sempra Energy.

The bonds are 4.30% First Mortgage Bonds, Series VV, due January 15, 2049. They will accrue interest at 4.30% per annum, payable semi-annually on January 15 and July 15, starting in January 2019.

SoCalGas raised $550,000,000 in aggregate principal amount. After deducting underwriting discounts but before other expenses, the net proceeds were approximately 99.08% of the principal amount.

Further details can be found in the attached exhibits to this 8-K filing, including the Underwriting Agreement (Exhibit 1.1) and the Supplemental Indenture (Exhibit 4.1).