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.