Summary
Sempra (SRE) has successfully closed a public offering of $600 million in aggregate principal amount of 6.875% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2054. The net proceeds, approximately $594.0 million after underwriting discounts and before other expenses, are intended to support the company's general corporate purposes. This issuance represents a strategic move to secure long-term financing, with the notes carrying a fixed rate until October 2029, after which the interest rate will reset based on the Five-year U.S. Treasury Rate plus a spread of 2.789%.
Key Highlights
- 1Sempra closed a $600 million offering of 6.875% Junior Subordinated Notes due 2054.
- 2Net proceeds from the offering are approximately $594.0 million.
- 3The notes have a fixed interest rate of 6.875% per annum until October 1, 2029.
- 4From October 1, 2029, the interest rate will reset every five years based on the Five-year U.S. Treasury Rate plus a spread of 2.789%.
- 5Interest is payable semi-annually on April 1 and October 1.
- 6The company has the option to defer interest payments for up to 20 consecutive semi-annual periods.
- 7Sempra may redeem the notes under specific conditions, including after October 1, 2029, or upon certain specified events.