PG&E and subsidiary amend maturity and pricing on senior revolvers

By Marisa Wong

Madison, Wis., April 4 - PG&E Corp. entered into on April 1 an amendment and restatement of its $300 million senior unsecured five-year revolving credit agreement dated May 31, 2011, according to an 8-K filing with the Securities and Exchange Commission.

Also on April 1, PG&E's subsidiary, Pacific Gas and Electric Co., amended and restated its $3 billion senior unsecured five-year revolving credit agreement dated May 31, 2011.

The parent company's and the subsidiary's amended and restated credit agreements contain substantially similar terms as their respective 2011 credit agreements, except that the restated credit agreements have a term of five years. All amounts borrowed under the agreements are due and payable on April 1, 2018.

In addition, the facility fee and the applicable margin used to calculate the interest rate were amended.

Interest for each credit agreement will now equal Libor plus 90 basis points to 165 bps, depending on the borrower's senior unsecured credit ratings issued by Standard & Poor's and Moody's Investors Service.

The facility fee under each credit agreement, also based on the borrower's credit ratings, will range between 10 bps and 35 bps.

PG&E's amended and restated credit agreement is with Bank of America, NA as administrative agent and a lender; J.P. Morgan Securities LLC, Citigroup Global Markets Inc., BofA Merrill Lynch, RBS Securities Inc. and Wells Fargo Securities LLC as joint lead arrangers and joint bookrunners; Citibank NA and JPMorgan Chase Bank, NA as co-syndication agents and lenders; Royal Bank of Scotland plc and Wells Fargo Bank, NA as co-documentation agents and lenders; and Barclays Bank plc, BNP Paribas, Goldman Sachs Bank USA, Morgan Stanley Bank, NA, Morgan Stanley Senior Funding, Inc., Bank of New York Mellon, NA, Mizuho Corporate Bank, Ltd., Royal Bank of Canada, U.S. Bank NA, Union Bank, NA, TD Bank, NA, Canadian Imperial Bank of Commerce and Sumitomo Mitsui Banking Corp. as additional lenders.

Pacific Gas and Electric's amended and restated credit agreement is with Citibank as administrative agent and a lender; BofA Merrill Lynch, Citigroup Global Markets, J.P. Morgan Securities, RBS Securities and Wells Fargo Securities as joint lead arrangers and joint bookrunners; Bank of America and JPMorgan Chase Bank as co-syndication agents and lenders; Royal Bank of Scotland and Wells Fargo Bank as co-documentation agents and lenders; and the same additional lenders as those under PG&E's credit agreement.

The energy companies are based in San Francisco.

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