New Issue: PG&E Corp. sells $600 million five-year notes to yield 6 7/8%

By Paul A. Harris

St. Louis, June 27 - PG&E Corp. sold $600 million of senior secured notes due July 15, 2008 (not rated) at par, Friday, to yield 6 7/8%, according to a syndicate source.

Price talk was 7% area.

Lehman Brothers was the bookrunner on the Rule 144A deal. The co-managers were Citigroup, Goldman Sachs, Morgan Stanley and Banc One Capital Markets.

Proceeds will be used to refinance the credit facility.

The issuer is a San Francisco-based energy company.

Issuer:	PG&E Corp.
Amount:	$600 million
Maturity:	July 15, 2008
Security description:	Senior secured notes
Bookrunner:	Lehman Brothers
Co-managers:	Citigroup, Goldman Sachs, Morgan Stanley, Banc One Capital Markets
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	440 basis points
Call features:	Make-whole call until July 15, 2006 the at 103.438, 101.719, par on July 15, 2008
Equity clawback:	Until July 15, 2006 for 35% at 106.875
Settlement date:	July 2, 2003
Ratings:	Not rated
Rule 144A Cusip:	69331CAB4
Price talk:	7% area

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