San Diego Gas & Electric Co. closed a $350 million public offering of 10-year first mortgage bonds paying 3 percent annually, the company said Aug. 18.
The bonds were rated Aa3 by Moody’s Investors Service and A+ by Standard & Poor’s Corp., several steps away from the top rating for both credit rating agencies.
For the second time, SDG&E used several minority-owned investment banks as underwriters of the securities along with Deutsche Bank Securities Inc., RBC Capital Markets LLC and UBS Investment Bank.
The minority-owned managers were CastleOak Securities LP, Guzman & Co. and The Williams Capital Group.
Proceeds will be used to fund the company five-year capital improvement plan including construction of the Sunrise Powerlink transmission line that will take solar and wind energy generated in the Imperial Valley and move it to San Diego.
SDG&E, a unit of San Diego-based Sempra Energy, was engaging the minority-owned firms in compliance with state regulations to increase participation.
— Mike Allen