Sempra Energy Raises USD850 Million in Public Offering of Notes Due 2021

Published: Oct 10 2017
Deal Summary

Sempra Energy, an energy services holding company, has completed the public offering of floating rate notes, due March 15, 2021, for gross proceeds of USD850 million. The notes were issued at 99.65% of the principal amount.

Interest on the notes will be paid quarterly on March 15, June 15, September 15 and December 15 of each year, commencing from December 15, 2017. The interest rate on the notes for the period from and including their original issue date to but excluding the interest payment date falling in December 2017 will be a rate per annum equal to the 3 Month LIBOR rate, determined as of the second London banking day immediately preceding the original issue date of the notes, plus 45 basis points. Interest on the notes will be reset on each interest payment date, beginning with the interest reset date falling in December 2017, and will be a per annum rate equal to the 3 month LIBOR rate, determined as of the second London banking day immediately preceding the applicable interest reset date, plus 45 basis points. The interest rate on the notes will in no event be higher than the maximum rate permitted by New York law as the same may be modified by US law of general application. The initial interest period for the notes will be the period beginning on, and including, the original issue date of the notes to, but excluding, the interest payment date falling in December 2017. The notes will not be redeemable at the company’s option.

J.P. Morgan Securities LLC and Mizuho Securities USA LLC acted as underwriters, while Latham & Watkins LLP and Kimberly McDonnell acted as legal advisors to the company for the offering.

The company intends to use the net proceeds for the repayment of outstanding commercial paper, with any remaining net proceeds used for other general corporate purposes.

Deal History:

Announced/Pricing: On October 10, 2017, Sempra Energy priced the public offering of floating rate notes, due March 15, 2021, for gross proceeds of USD850 million.

Filing: On August 30, 2017, Sempra Energy filed a prospectus with Securities and Exchange Commission (SEC) to issue common stock and debt securities, in a public offering on time to time basis.

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