Sempra subsidiary issues $850 million in bonds

In a recent development, San Diego Gas & Electric Company (SDG&E), an indirect subsidiary of Sempra (NYSE:SRE), has entered into an agreement to issue $850 million in bonds. The 5.400% First Mortgage Bonds, Series CCCC, due 2035, were sold to several underwriters led by CIBC (TSX:CM) World Markets Corp., Morgan Stanley (NYSE:MS) & Co. LLC, TD Securities (USA) LLC, and U.S. Bancorp (BVMF:USBC34) Investments, Inc.

The transaction took place on Monday, with the bonds priced at 99.720% of their aggregate principal amount. This sale is part of a registered public offering under the company’s effective shelf registration statement. According to InvestingPro data, Sempra currently maintains a debt-to-equity ratio of 1.23, with analysts projecting continued profitability for the coming year. For deeper insights into Sempra’s financial health and detailed metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The bonds are expected to be resold in a public offering as detailed in the prospectus supplement and related prospectus filed with the U.S. Securities and Exchange Commission. The underwriting agreement, dated March 24, 2025, outlines the terms of the bond sale and is included as an exhibit in the 8-K filing.

This financial move by SDG&E, headquartered in San Diego, California, is part of their broader capital-raising efforts. The issuance of these bonds does not constitute an offer to sell or a solicitation of an offer to buy any securities. The offer is made solely by the prospectus supplement and related prospectus.

Sempra, also based in San Diego, is a utility services holding company involved in the sale of electricity and natural gas. The company, along with its subsidiary SDG&E, has not changed its name or address since the last report.

The information reported here is based on a press release statement filed with the SEC and does not imply any sale of these securities in jurisdictions where, or to persons to whom, such offer, solicitation, or sale would be unlawful. The bonds are only offered through the prospectus supplement and the related prospectus referred to in the filing.

In other recent news, Sempra Energy has been active on multiple fronts. San Diego Gas & Electric Company, a subsidiary of Sempra, has issued $850 million in First Mortgage Bonds, set at an interest rate of 5.400% and due in 2035. This move is part of Sempra’s broader financial strategy to manage capital and invest in subsidiary operations. Meanwhile, analysts have adjusted their outlooks on Sempra Energy. BMO Capital Markets reduced its price target to $78 but maintained an Outperform rating, noting a downward revision of Sempra’s 2025 guidance. Jefferies downgraded Sempra’s stock from "Buy" to "Hold" and lowered the price target to $77, citing concerns over the company’s earnings growth and regulatory challenges. Barclays (LON:BARC) also downgraded the stock from Overweight to Equal Weight, setting a new price target of $72, reflecting skepticism about Sempra’s financial adjustments. In contrast, BofA Securities maintained a Buy rating, albeit with a reduced price target of $86, expressing confidence in Sempra’s potential for long-term growth. These developments highlight various perspectives on Sempra’s financial health and future performance.

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