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Energy capital raises in 2017: PG&E $2.5B debt issue leads week's offering

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Energy capital raises in 2017: PG&E $2.5B debt issue leads week's offering

This Data Dispatch will be updated throughout 2017 to tally capital offerings in the U.S. energy industry. Click here for a spreadsheet listing all energy capital offerings since Nov. 4, 2009.

The U.S. energy industry aggregate year-to-date capital raised reached $121.03 billion as of Dec. 1, according to S&P Global Market Intelligence data. The total comprises $92.39 billion of senior debt, $14.91 billion of common equity, $6.78 billion of subordinated debt, $6.47 billion of preferred equity and $480 million of trust preferred shares in 2017.

By sector, power companies have raised $72.65 billion of capital, midstream companies have raised $41.18 billion, gas utilities have raised $4.33 billion and the coal sector has raised $2.86 billion. Of the total common equity raises in 2017, energy companies raised $7.61 billion from 25 follow-on offerings, $2.46 billion from nine private-placement transactions, $2.46 billion from 69 at-the-market transactions, $1.45 billion from five IPOs, $920 million from four "other" transactions and $10 million from one best-efforts deal.

* Spire Alabama Inc. on Dec. 1 completed a $30 million private placement of 4.02% series 2017A senior unsecured notes due Jan. 15, 2058. The Spire Inc. subsidiary will use the net proceeds for general corporate purposes.

* NRG Energy Inc. on Nov. 30 sold $870 million of 5.75% senior unsecured notes due Jan. 15, 2028, to help repurchase any and all of the approximately $869.2 million outstanding 6.625% senior notes due 2023.

* Vectren Utility Holdings Inc. on Nov. 29 completed a $100 million private placement of 3.93% series B guaranteed senior unsecured notes due Nov. 29, 2047. The Vectren Corp. subsidiary will use the net proceeds to fund CapEx and for general corporate purposes.

* Atmos Energy Corp. on Nov. 28 sold $395.6 million worth of 4,558,404 common shares at $86.79 apiece. The company will use the sale proceeds to repay short-term debt under its commercial paper program, to fund capital spending primarily to enhance the safety and reliability of its system and for general corporate purposes. Merrill Lynch Pierce Fenner & Smith Inc. and J.P. Morgan Securities LLC served as joint book-running managers.

* Andeavor Logistics LP on Nov. 28 sold $600 million of its 6.875% series A cumulative redeemable perpetual preferred units to redeem its 6.25% senior notes due 2022, repay borrowings under the revolving credit facility and for general partnership purposes. Merrill Lynch Pierce Fenner & Smith Inc., Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC acted as joint book-running managers.

* Pinnacle West Capital Corp. on Nov. 28 sold $300 million of its 2.25% senior unsecured notes due Nov. 30, 2020 for for general corporate purposes, including the repayment of its $125 million term loan due Dec. 31. Barclays Capital Inc., Mizuho Securities USA LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC served as joint book-running managers.

* Pacific Gas and Electric Co. on Nov. 27 sold $2.5 billion of senior notes to repay $700 million of its 5.625% senior notes due Nov. 30, $250 million of its floating-rate senior notes due Nov. 30 and $250 million of its floating-rate unsecured term loan maturing Feb. 22, 2018, as well as a portion of its 8.25% senior notes due Oct. 15, 2018, for general corporate purposes. The PG&E Corp. sold $500 million of floating-rate notes due Nov. 28, 2018, $1.15 billion of 3.30% notes due Dec. 1, 2027, and $850 million of 3.95% notes due Dec. 1, 2047. Barclays Capital Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC acted as joint book-running managers, among others.

* WGL Holdings Inc. on Nov. 27 sold $300 million of floating-rate senior unsecured notes due Nov. 29, 2019, to repay short-term debt, make equity contribution to Washington Gas Light Co. and fund CapEx. TD Securities (USA) LLC and Wells Fargo Securities LLC acted as joint book-running managers.

* Northern States Power Co. - WI on Nov. 27 sold $100 million of its 3.75% first mortgage bonds due Dec. 1, 2047. The Xcel Energy Inc. will use the net proceeds to repay short-term debt borrowings and for general corporate purposes. Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC served as joint book-running managers.

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