Company: SREA
Filing Date: 2025-09-23
Form Type: 8-K
Source: 0001032208-25-000055
Chunk: 1

Company: SEMPRA
Filing Date: 2025-09-23
Form: 8-K
Item: Item 8.01
Chunk 1
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 of $340 million will be payable by Sempra over two years starting in 2026. The PSA also contemplates potential post-Closing purchase price adjustments based on the performance through 2028 of certain wind power facilities, and an adjustment payable by Sempra for capital expenditures related to Phase 1 of the Energía Costa Azul liquefaction project currently under construction (the “ ECA LNG Phase 1 project”).

The parties have made customary representations and warranties and agreed to customary covenants that apply until the Closing, including, among others, approval rights substantially similar to those under Sempra Infrastructure Partners’ limited partnership agreement currently in effect (the “ LPA”). The representations and warranties will not survive the Closing, subject to exceptions for fraud.

At Closing, Sempra and the KKR Partners will amend the $300 million promissory note issued by one of the KKR Partners in November 2021 to, among other things, extend its maturity date and increase its interest rate consistent with the Notes. Also at Closing, affiliates of Sempra will enter into an agreement to provide certain limited transition services to Sempra Infrastructure Partners until 2028.

The Closing is expected to occur in the second or third quarter of 2026, subject to expiration of the waiting period under the Hart-Scott-Rodino Act; receipt of applicable regulatory approvals, such as antitrust approvals in Mexico and approval by the Federal Energy Regulatory Commission; receipt of certain other third-party consents or waivers; the absence of a material adverse effect on Sempra Infrastructure Partners; the absence of specific downgrade events under certain financing arrangements; and other customary closing conditions. The Closing will not occur before March 31, 2026, and if the Closing has not occurred at that time, a “ticking fee” payable to Sempra of 0.625% per month on the aggregate base purchase price will accrue daily beginning April 1, 2026. If the KKR Partners fail to complete the Closing when all closing conditions are satisfied, Sempra will receive a termination fee of $414 million. Any party may generally terminate the PSA if the Closing has not occurred within 12 months after signing.

In connection with signing the PSA, Sempra expects to classify Sempra Infrastructure Partners in the third quarter of 2025 as held for sale, stop recording depreciation, and record income tax expense of approximately $500 million to (i) adjust deferred income tax liabilities related to outside basis differences in its investment in Sempra Infrastructure Partners, (ii) account for