8-KOther EventsExhibits & Filings

SEMPRA 8-K Report, Corporate Update (Jun 26, 2019)

Filed June 26, 2019For Securities:SRESREA

Summary

Sempra Energy (SRE) announced the successful closing of a public offering of $757.5 million in aggregate principal amount of 5.750% Junior Subordinated Notes due 2079. The net proceeds from this offering, after deducting underwriting discounts and estimated expenses, will be used by the company. This issuance, registered under a Form S-3, extends Sempra's debt maturity profile with a significant long-term component. The notes carry a 5.750% interest rate, payable quarterly, with the option for Sempra to defer interest payments for up to 40 consecutive quarters under certain conditions, though not beyond the final maturity date. The company also retains the option to redeem the notes in whole or in part starting October 1, 2024, or earlier under specific circumstances. This action reflects Sempra's ongoing capital management strategy to fund its operations and growth initiatives.

Key Highlights

  • 1Closed a public offering of $757.5 million in 5.750% Junior Subordinated Notes due 2079.
  • 2Net proceeds raised to support company operations and growth, subject to underwriting discounts and estimated expenses.
  • 3The notes have a long maturity date of July 1, 2079.
  • 4Interest accrues from June 26, 2019, and is payable quarterly, beginning October 1, 2019.
  • 5Sempra has the option to defer interest payments for up to 40 consecutive quarters.
  • 6The company can redeem the notes on or after October 1, 2024, at 100% of the principal amount, plus accrued interest.
  • 7Optional early redemption is possible before October 1, 2024, upon occurrence of specified events.

Frequently Asked Questions

The 8-K filing indicates that the proceeds from the issuance of the 5.750% Junior Subordinated Notes due 2079 are for the company's general corporate purposes, which typically include funding operations, capital expenditures, and supporting growth initiatives.

The notes carry a fixed interest rate of 5.750% per annum and mature on July 1, 2079, making them a long-term debt instrument for Sempra Energy.

Yes, Sempra has the option to defer interest payments on these notes for specified periods, up to 40 consecutive quarterly interest payment periods, provided no event of default has occurred. However, these optional deferral periods cannot extend beyond the final maturity date of the notes.

Sempra can redeem some or all of the notes starting October 1, 2024, at 100% of the principal amount plus accrued interest. Additionally, the company has the option to redeem all notes prior to October 1, 2024, if certain specified events occur.