Stock Buyback Annoucement from SDG&E

San Diego Gas and Electric, which serves several South Orange County cities, has announced its plans to redeem outstanding shares of preferred and preference stock by Oct. 15.

The following details come from an SDG&E announcement:

SDG&E today announced that, on Oct. 15, 2013, SDG&E will redeem all issued and outstanding shares of its Cumulative Preferred Stock and Preference Stock (Cumulative) at the following redemption prices:

·         5.0% Series Cumulative Preferred Stock, $20 par value (CUSIP Number 797440401), at a redemption price of $24.00 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest;

·         4.5% Series Cumulative Preferred Stock, $20 par value (CUSIP Number 797440302), at a redemption price of $21.20 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest;

·         4.4% Series Cumulative Preferred Stock, $20 par value (CUSIP Number 797440203), at a redemption price of $21.00 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest;

·         4.6% Series Cumulative Preferred Stock, $20 par value (CUSIP Number 797440807), at a redemption price of $20.25 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest;

·         $1.70 Series Preference Stock (Cumulative), without par value (CUSIP Number 797440823), at a redemption price of $25.00 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest;

·         $1.82 Series Preference Stock (Cumulative), without par value (CUSIP Number 797440815), at a redemption price of $26.00 per share plus all accrued and accumulated dividends on such share to the redemption date, without interest.

The cost of the redemption will be approximately $81.5 million plus all accrued and accumulated dividends to the redemption date.

The redemption date will be Oct. 15.  Dividends on shares of the Cumulative Preferred Stock and Preference Stock (Cumulative) will cease to accrue on the redemption date, on and after which the holders of Cumulative Preferred Stock and Preference Stock (Cumulative) will be entitled to receive only the respective redemption prices (including accrued and accumulated dividends to the redemption date), without interest, in respect of their shares.

Notices of redemption and related materials are being mailed to record holders of the outstanding shares of Cumulative Preferred Stock and Preference Stock (Cumulative) commencing on or about Sept. 3. To receive payment of the applicable redemption price, holders of shares of Cumulative Preferred Stock and Preference Stock (Cumulative) must surrender their shares and return a completed Letter of Transmittal to Wells Fargo Bank, N.A., which will serve as the redemption agent.

Questions regarding the redemption of preferred stock and preference stock may be directed to Wells Fargo Bank, N.A. at (800) 468-9716 (toll free) or (651) 450-4064, or to SDG&E at (619) 696-2020.  Requests for additional copies of the notice of redemption and related materials should be directed to the redemption agent.

SDG&E is a regulated public utility that provides safe and reliable energy service to 3.4 million consumers through 1.4 million electric meters and 860,000 natural gas meters in San Diego and southern Orange counties.  The utility’s service area spans 4,100 square miles.  SDG&E is committed to creating ways to help customers save energy and money every day.  SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.  Connect with SDG&E’s Customer Contact Center at 800-411-7343, Twitter (@SDGE) and Facebook.