SCE&G announces debt offering
August 16, 2018
South Carolina Electric & Gas Company (SCE&G), principal subsidiary of SCANA Corporation (NYSE:SCG), announced that it sold, in a negotiated offering, a total of $700 million principal amount of its First Mortgage Bonds. The sale consisted of $300 million principal amount of its First Mortgage Bonds, 3.50 percent Series due August 15, 2021 and $400 million principal amount of its First Mortgage Bonds, 4.25 percent Series due August 15, 2028. The 3-year and 10-year bonds sold are initially being offered to the public at 99.997 percent and 99.750 percent respectively. Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC acted as joint book-running managers, and FTN Financial Securities Corp and Synovus Securities, Inc. acted as co-managers for the transaction.
SCE&G intends to apply the net proceeds from the sale of the bonds to pay $550 million of First Mortgage Bonds with a maturity date of November 1, 2018. SCE&G may also apply the net proceeds from the sale of the bonds to repay borrowings under a credit agreement and other short-term debt and for general corporate purposes.
It is anticipated that these bonds will be issued on August 17, 2018. The transaction is subject to normal closing conditions.
