Summary
Sempra Energy (SRE) announced on May 17, 2019, the establishment of new, significant revolving credit facilities across its corporate structure, totaling an initial aggregate borrowing capacity of $6.685 billion. These facilities, each with a five-year term extending to May 17, 2024, are designed to provide enhanced financial flexibility and liquidity. The new credit arrangements replace existing facilities that were set to expire in 2020, indicating a proactive approach to managing the company's debt structure and capital resources. The new facilities include a $1.25 billion credit facility for Sempra Energy itself, a substantial $3.185 billion facility for its subsidiary Sempra Global (guaranteed by Sempra Energy), a $1.5 billion facility for San Diego Gas & Electric Company (SDG&E), and a $750 million facility for Southern California Gas Company. These facilities all carry customary covenants, including a debt-to-capitalization ratio limit of 65%, and provide for potential increases in borrowing capacity, demonstrating the company's ongoing access to capital markets.
Key Highlights
- 1Sempra Energy secured a new $1.25 billion, five-year revolving credit facility maturing in May 2024.
- 2Sempra Global, a subsidiary, obtained a significant $3.185 billion, five-year revolving credit facility, guaranteed by Sempra Energy.
- 3San Diego Gas & Electric Company (SDG&E) established a $1.5 billion, five-year revolving credit facility, an increase from its previous capacity.
- 4Southern California Gas Company secured a $750 million, five-year revolving credit facility.
- 5The new credit facilities collectively provide an initial aggregate borrowing capacity of $6.685 billion.
- 6All new facilities include provisions for potential increases in commitment amounts, offering further financial flexibility.
- 7The company terminated older credit agreements that were scheduled to expire in 2020.