Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Statement Nos. 333-222651 and 333-235814
Southern California Gas Company
Final Term Sheet
January 6, 2020
2.550% First Mortgage Bonds, Series XX, due 2030
This free writing prospectus relates only to the securities described below and should be read together with Southern California Gas Company’s preliminary prospectus supplement dated January 6, 2020 (the “Preliminary Prospectus Supplement”), the accompanying prospectus dated February 1, 2018 and the documents incorporated and deemed to be incorporated by reference therein.
| Issuer: | Southern California Gas Company (the “Company”) | |
| Anticipated Ratings1: | Aa2 (negative) by Moody’s Investor Service | |
| A+ (negative) by S&P Global Ratings | ||
| AA- (stable) by Fitch Ratings | ||
| Trade Date: | January 6, 2020 | |
| Settlement Date: | January 9, 2020 (T+3) | |
| Securities Offered: | 2.550% First Mortgage Bonds, Series XX, due 2030 | |
| Aggregate Principal Amount Offered: | $650,000,000 | |
| Interest Payment Dates: | February 1 and August 1, commencing August 1, 2020 | |
| Coupon: | 2.550% per annum, accruing from January 9, 2020 | |
| Maturity: | February 1, 2030 | |
| Yield to Maturity: | 2.576% | |
| Spread to Benchmark Treasury: | +77 basis points | |
| Benchmark Treasury: | 1.750% due November 15, 2029 | |
| Benchmark Treasury Yield: | 1.806% | |
| Optional Redemption Provision: | Prior to November 1, 2029 (the “Par Call Date”), make-whole call at Adjusted Treasury Rate (as defined in the Preliminary Prospectus Supplement) +15 basis points. On and after the Par Call Date, 100% of the principal amount. See the Preliminary Prospectus Supplement for the definition of “Adjusted Treasury Rate” and for further terms and provisions applicable to optional redemption. | |
| 1 | Note: A securities rating is not a recommendation to buy, sell or hold securities and is subject to revision or withdrawal at any time. |
| Price to Public: | 99.770%, plus accrued interest, if any | |
| CUSIP: | 842434CU4 | |
| ISIN: | US842434CU45 | |
| Total Net Proceeds: | Approximately $644.3 million, after deducting the underwriting discount but before deducting estimated offering expenses payable by the Company. | |
| Joint Book-Running Managers: | Credit Agricole Securities (USA) Inc. | |
| Mizuho Securities USA LLC | ||
| Scotia Capital (USA) Inc. | ||
| U.S. Bancorp Investments, Inc. | ||
| Academy Securities, Inc. | ||
| Co-Managers: | BBVA Securities Inc. | |
| Blaylock Van, LLC | ||
| R. Seelaus & Co., LLC | ||
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Credit Agricole Securities (USA) Inc. toll-free at 1-866-807-6030, by calling Mizuho Securities USA LLC toll-free at 1-866-271-7403, by calling Scotia Capital (USA) Inc. toll-free at 1-800-372-3930 or by calling U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607.
Any legends, disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such legends, disclaimers or other notices have been automatically generated as a result of this communication having been sent via Bloomberg or another system.