SoCalGas prices $500M in first mortgage bonds at 5.5%
What's the deal? Southern California Gas Company (SoCalGas)Dealroom has a profile for this one. Try Dealroom →, an indirect subsidiary of SempraDealroom has a profile for this one. Try Dealroom →, has priced $500 million in first mortgage bonds carrying a 5.500% coupon and maturing in 2036. The offering priced on August 17, 2026, with settlement expected on August 21.
The terms: The bonds, designated Series GGG, sold at 99.405% of par, a spread of 85 basis points over the benchmark Treasury. SoCalGas expects net proceeds of roughly $493.8 million before expenses.
Who's backing it? BarclaysDealroom has a profile for this one. Try Dealroom → Capital, Credit Agricole Securities, MUFG Securities Americas, and TD SecuritiesDealroom has a profile for this one. Try Dealroom → are acting as joint book-running managers. The notes are offered under SoCalGas' shelf registration on Form S-3.
What's the money for? Proceeds are earmarked for general corporate purposes, as described in the prospectus. The financing lifts the utility's long-term debt by $500 million at a fixed rate and adds to its liquidity.
Why it matters: The bonds are secured under SoCalGas' first mortgage indenture, giving holders mortgage-backed security. That structure typically appeals to investors seeking lower-risk exposure to regulated utilities.
The signal: At $500 million, the raise sits in the upper tier of debt deals by size, a scale that reflects the steady appetite for investment-grade utility paper. For SoCalGas, locking in a fixed 5.5% coupon through 2036 secures long-dated funding at a defined cost.
Read more: minichart.com.sg
Image credit: Ken Lund
