Summary
This 8-K filing from Sempra Energy (SRE) on March 14, 2022, announces the successful closing of a public offering by its indirect subsidiary, Southern California Gas Company (SoCalGas). SoCalGas issued $700 million in aggregate principal amount of 2.950% Notes due 2027. The net proceeds, after deducting underwriting discounts but before other expenses, were approximately 98.925% of the principal amount, indicating a slight premium to par value. These new notes mature on April 15, 2027, and will bear a fixed interest rate of 2.950% per annum, paid semi-annually. This issuance provides SoCalGas with long-term financing, the proceeds of which are presumably for general corporate purposes or specific capital projects, bolstering its financial flexibility. Investors should note the specific maturity date and interest rate, as well as the fact that the notes are redeemable prior to maturity, terms detailed in the associated exhibits.
Key Highlights
- 1Southern California Gas Company (SoCalGas), an indirect subsidiary of Sempra Energy, successfully closed a public offering of debt.
- 2The offering consisted of $700,000,000 aggregate principal amount of 2.950% Notes due 2027.
- 3The Notes mature on April 15, 2027.
- 4The annual interest rate on the Notes is fixed at 2.950%.
- 5Interest payments are scheduled semi-annually, on April 15 and October 15, beginning October 15, 2022.
- 6The proceeds from the offering were received at a rate of 98.925% of the principal amount after underwriting discounts, indicating a minor discount to par.
- 7The Notes are redeemable prior to maturity, with redemption prices detailed in the accompanying exhibits.