PG&E Announces Offering Of $1.5 Bln Convertible Sr. Notes

(RTTNews) - PG&E Corporation (PCG), a gas and electricity utility company, on Wednesday announced a private offering for $1.5 billion of Convertible Senior Secured Notes.

The company is also granting the initial purchasers to buy up to an additional $225 million of notes.

The net proceeds from the offering will be used to repay a portion of the loans outstanding under the $2.75 billion secured term loan credit agreement it entered into in June 2020. On November 24, 2023 the borrowing totalled around $2.66 billion bearing a floating interest rate of around 8.44 percent per annum.

The convertible notes will mature on December 1, 2027 unless converted or repurchased earlier. They will be secured by on a first lien basis by the pledge of PG&E Corporation's ownership interest in 100 percent of the shares of common stock of its principal subsidiary, Pacific Gas and Electric Company.

Interest on the notes will be paid semi annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2024.

The notes will be converted only upon the occurrence of certain events prior to the business close on business day preceding September 1, 2027.

On or after September 1, 2027, the Convertible Notes will be convertible by holders at any time in whole or in part till business close on the business day preceding the maturity date.

In Pre-market activity, PG&E shares are trading at $17.01 down 2.80% on the New York Stock Exchange.