DEBT AND CREDIT FACILITIES

6 Months Ended

Jun. 30, 2017

DEBT AND CREDIT FACILITIES

LINES OF CREDIT

At June 30, 2017, Sempra Energy Consolidated had an aggregate of $4.3 billion in three primary committed lines of credit for Sempra Energy, Sempra Global and the California Utilities to provide liquidity and to support commercial paper. The principal terms of these committed lines of credit, which expire in October 2020, are described below and in Note 5 of the Notes to Consolidated Financial Statements in the Annual Report. Available unused credit on these lines at June 30, 2017 was approximately $3.1 billion. Our foreign operations have additional general purpose credit facilities aggregating $1.7 billion at June 30, 2017. Available unused credit on these lines totaled $1 billion at June 30, 2017.



PRIMARY U.S. COMMITTED LINES OF CREDIT
(Dollars in millions)
		At June 30, 2017
		Total facility			Commercial paper outstanding(4)			Available unused credit
Sempra Energy(1)		$	1,000		$	—		$	1,000
Sempra Global(2)		2,335			(1,236		)	1,099
California Utilities(3):
	SDG&E	750			(5		)	745
	SoCalGas	750			—			750
	Less: combined limit of $1 billion for both utilities	(500		)	—			(500		)
		1,000			(5		)	995
Total		$	4,335		$	(1,241	)	$	3,094

(1) The facility also provides for issuance of up to $400 million of letters of credit on behalf of Sempra Energy with the amount of borrowings otherwise available under the facility reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at June 30, 2017.

(2) Sempra Energy guarantees Sempra Global’s obligations under the credit facility.

(3) The facility also provides for the issuance of letters of credit on behalf of each utility subject to a combined letter of credit commitment of $250 million for both utilities. The amount of borrowings otherwise available under the facility is reduced by the amount of outstanding letters of credit. No letters of credit were outstanding at June 30, 2017.

(4) Because the commercial paper programs are supported by these lines, we reflect the amount of commercial paper outstanding as a reduction to the available unused credit.

Sempra Energy, SDG&E and SoCalGas must maintain a ratio of indebtedness to total capitalization (as defined in each agreement) of no more than 65 percent at the end of each quarter. Each entity is in compliance with this and all other financial covenants under its respective credit facility at June 30, 2017.



CREDIT FACILITIES IN SOUTH AMERICA AND MEXICO
(U.S. dollar-equivalent in millions)
			At June 30, 2017
		Denominated in	Total facility		Amount outstanding				Available unused credit
Sempra South American Utilities(1):
	Peru(2)	Peruvian sol	$	379	$	(147	)	(3)	$	232
	Chile	Chilean peso	115		—				115
Sempra Mexico:
	IEnova(4)	U.S. dollar	1,170		(516		)		654
Total			$	1,664	$	(663	)		$	1,001

(1) The credit facilities were entered into to finance working capital and for general corporate purposes and expire between 2017 and 2020.

(2) The Peruvian facilities require a debt to equity ratio of no more than 170 percent, with which we were in compliance at June 30, 2017.

(3) Includes bank guarantees of $4 million.

(4) Five-year revolver expiring in August 2020 with a syndicate of eight lenders.

WEIGHTED AVERAGE INTEREST RATES

The weighted average interest rates on total short-term debt at Sempra Energy Consolidated were 1.81 percent and 1.51 percent at June 30, 2017 and December 31, 2016, respectively. The weighted average interest rate on total short-term debt at SDG&E was 1.15 percent at June 30, 2017. At December 31, 2016, the weighted average interest rate on total short-term debt at SoCalGas was 0.75 percent.

LONG-TERM DEBT

Sempra Energy

In June 2017, Sempra Energy publicly offered and sold $750 million of 3.25-percent, fixed rate notes maturing in 2027. Sempra Energy used the proceeds from the offering to repay outstanding commercial paper.

SDG&E

In June 2017, SDG&E publicly offered and sold $400 million of 3.75-percent, first mortgage bonds maturing in 2047. SDG&E used the proceeds from the offering to repay outstanding commercial paper.

In 2015, SDG&E entered into a CPUC-approved 25-year PPA with a peaker plant facility. Construction of the peaker plant facility was completed and delivery of contracted power commenced in June 2017, at which time we recorded a $500 million capital lease obligation on SDG&E’s and Sempra Energy’s Condensed Consolidated Balance Sheets. We discuss commitments related to this capital lease obligation in Note 15 of the Notes to Consolidated Financial Statements in the Annual Report.

Sempra South American Utilities

In February 2017, Luz del Sur publicly offered and sold $50 million of corporate bonds at 6.38 percent, maturing in 2023.

INTEREST RATE SWAPS

We discuss our fair value interest rate swaps and interest rate swaps to hedge cash flows in Note 7.