Summary
Sempra Energy's indirect subsidiary, San Diego Gas & Electric Company (SDG&E), successfully closed a public offering of $400 million in 3.320% First Mortgage Bonds, Series UUU, due 2050. The offering, which was registered under a Form S-3, generated net proceeds of approximately $395.992 million after deducting underwriting discounts but before other estimated expenses. This issuance provides SDG&E with long-term financing at a fixed rate, enhancing its capital structure. Investors should note that these bonds mature in 2050 and will bear a fixed interest rate of 3.320% per annum, with semi-annual interest payments commencing in October 2020. The indenture allows for redemption prior to maturity under specific conditions. This debt issuance is a routine financing activity for a regulated utility, aimed at funding operations and capital expenditures.
Key Highlights
- 1SDG&E completed a public offering of $400 million in 3.320% First Mortgage Bonds due 2050.
- 2The bonds have a fixed interest rate of 3.320% per annum.
- 3The maturity date for these bonds is April 15, 2050.
- 4Interest payments are scheduled semi-annually on April 15 and October 15, starting October 15, 2020.
- 5Net proceeds from the offering, after underwriting discounts, were approximately $395.992 million.
- 6The issuance was registered under Sempra's Form S-3 (File No. 333-222650).
- 7The bonds are redeemable prior to maturity at the Company's option under specified terms.