Summary
Sempra Energy's indirect subsidiary, San Diego Gas & Electric Company (SDG&E), successfully closed a public offering and sale of $800 million in 1.700% First Mortgage Bonds, Series VVV, due October 1, 2030. This debt issuance, registered under SDG&E's Form S-3, generated net proceeds of approximately $793.6 million after deducting underwriting discounts and an estimated $1.5 million in other expenses. The offering was completed on September 28, 2020. The issuance of these bonds, governed by the Seventieth Supplemental Indenture, provides SDG&E with long-term financing. The bonds carry a fixed interest rate of 1.700% per annum, with interest payable semi-annually. This move is consistent with Sempra Energy's strategy of managing its subsidiary's capital structure and funding its operations and growth initiatives through diverse debt markets. Investors should note that this is a debt issuance by a subsidiary, not directly by the parent Sempra Energy.
Key Highlights
- 1San Diego Gas & Electric Company (SDG&E), a subsidiary of Sempra Energy, issued $800 million in aggregate principal amount of 1.700% First Mortgage Bonds.
- 2The bonds mature on October 1, 2030, providing long-term debt capital for SDG&E.
- 3The issuance generated net proceeds of approximately $793.6 million after underwriting discounts and estimated expenses.
- 4The bonds were issued under the Seventieth Supplemental Indenture and registered on SDG&E's Form S-3.
- 5Interest rate on the bonds is fixed at a relatively low 1.700% per annum.
- 6Interest payments are scheduled semi-annually, starting April 1, 2021.
- 7This debt issuance by a subsidiary is part of Sempra Energy's broader capital management strategy.