PG&E gets commitments for $34.35 billion in debt financing facilities

By Caroline Salls

Pittsburgh, Oct. 7 – PG&E Corp. has received $34.35 billion in debt financing commitments from “leading money center banks,” according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of California.

The company said the financing, along with previously reported commitments for $14 billion in new equity capital, will allow it so implement its Chapter 11 plan.

PG&E said in an objection to motions for termination of its exclusive periods for filing and soliciting votes on a plan that its financing commitments provide terms far superior to those included in a competing plan that would be filed by noteholders if the company’s exclusivity is terminated.

The debt financing commitments would fully fund PG&E’s plan, the filing said.

The commitment parties are JPMorgan, Bank of America, NA, BofA Securities, Inc., Barclays Bank plc, Citigroup Global Markets Inc., Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC.

The commitments include a $7 billion unsecured 364-day bridge term loan facility and a $27.35 billion senior secured 364-day facility.

The interest rate on the bridge facility could range from Libor plus 175 basis points to Libor plus 300 bps, based on PG&E’s public debt rating. Interest on the secured facility will range from Libor plus 138 bps to Libor plus 250 bps.

The electric and natural-gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 under Chapter 11 case number 19-30088.

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