Pacific Gas and Electric set to launch high-grade deal on Monday call; junk and term loan to follow

By Cristal Cody

Tupelo, Miss., June 12 – Pacific Gas and Electric Co. plans to hold global fixed income investor calls on Monday for an investment-grade registered benchmark offering of first mortgage bonds, according to a market source.

J.P. Morgan Securities, LLC, Barclays, BofA Securities, Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are the arrangers.

The high-grade bonds are expected to price in the upcoming week, depending on market conditions.

Parent company PG&E Corp. and Pacific Gas also are expected to price high-yield bonds, a term loan, common stock and equity units as part of the company’s reorganization funding from Chapter 11 bankruptcy following liability claims from the 2017 and 2018 northern California wildfires.

The first fallen angel reported in 2019 filed bankruptcy on Jan. 29, 2019 in the U.S. Bankruptcy Court for the Northern District of California under Chapter 11 case number 19-30088.

The California Public Utilities Commission approved the plan of reorganization on May 28.

The electric and natural gas utility, currently based in San Francisco, plans to relocate its headquarters to Oakland, Calif., beginning in 2022.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.