8-KOther EventsExhibits & Filings

SEMPRA 8-K Report, Corporate Update (May 31, 2019)

Filed May 31, 2019For Securities:SRESREA

Summary

This 8-K filing from Sempra Energy, specifically from its subsidiary San Diego Gas & Electric Company (SDG&E), details the successful closing of a public offering and sale of $400 million in aggregate principal amount of 4.100% First Mortgage Bonds, Series TTT, due 2049. The offering closed on May 31, 2019, with net proceeds to the company of approximately 99.020% of the principal amount, before deducting estimated expenses of $900,000. This issuance is registered under SDG&E's existing Form S-3 registration statement. The newly issued bonds carry a fixed interest rate of 4.100% per annum, payable semiannually on June 15 and December 15, with the first payment due on December 15, 2019. The bonds mature on June 15, 2049. The filing also provides details on the indenture under which the bonds were issued and the underwriting agreement. This debt issuance is a standard financing activity for a regulated utility to support its capital expenditures and operations.

Key Highlights

  • 1San Diego Gas & Electric Company (SDG&E) closed a public offering of $400 million in First Mortgage Bonds.
  • 2The bonds bear a fixed interest rate of 4.100% per annum.
  • 3The maturity date for these bonds is June 15, 2049.
  • 4Interest payments are scheduled to be made semiannually, on June 15 and December 15.
  • 5The offering proceeds are approximately 99.020% of the principal amount, before estimated expenses.
  • 6The issuance was registered under SDG&E's existing Form S-3 registration statement.
  • 7Key documents, including the underwriting agreement and the supplemental indenture, are filed as exhibits.

Frequently Asked Questions

This 8-K filing announces the closing of a public offering and sale of $400 million of new long-term debt (First Mortgage Bonds) by San Diego Gas & Electric Company (SDG&E), a subsidiary of Sempra Energy.

SDG&E raised $400,000,000 in aggregate principal amount of bonds. The net proceeds to the company, after deducting the underwriting discount but before other expenses, were approximately 99.020% of the principal amount.

The bonds are 4.100% First Mortgage Bonds, Series TTT, due 2049. They mature on June 15, 2049, and bear interest at a fixed rate of 4.100% per annum, payable semiannually on June 15 and December 15, beginning December 15, 2019.

This filing only reports the specific issuance by SDG&E. While it increases the overall debt of the Sempra Energy consolidated group, the direct impact on Sempra's credit rating would depend on various factors including the company's overall debt levels, cash flow, capital structure, and rating agency assessments. Investors should refer to Sempra Energy's other SEC filings and press releases for commentary on their credit profile.