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PG&E prices common stock and equity unit offerings
Posted on Friday, 26 June 2020 10:11
PG&E is raising USD 4.02 billion in its previously announced underwritten public offering and USD 1.60 billion in a concurrent issue of equity units as part of plans to emerge from chapter 11. The US holding company of Pacific Gas and Electric, which serves 16.00 million homes in northern and central California, is selling 423.37 million common stocks at USD 9.50 apiece. It has also provided a 42.34 million share overallotment option that would push the total raised to USD 4.42 billion. Goldman Sachs and JPMorgan are joint lead bookrunning managers for both offerings, while Barclays, Citigroup and BofA Securities are bookrunning managers. PG&E is raising a further USD 1.60 billion in total through the issue of 14.55 million equity units at USD 100.00 apiece and a 30-day green shoe for an additional 1.46 million such securities. Each of these securities consist of a prepaid stock contract and an undivided beneficial ownership interest in specified zero-coupon US treasury strips. The bonds mature on a quarterly basis from, and including, 15th August 2020 through to, and including, 15 August 2023. Completion of each offering is conditional upon emerging from the chapter 11 on the effective date of the plan of reorganisation, which in turn is conditional upon obtaining funding for this strategy. If the sales are successfully consummated, PG&E currently anticipates emerging from bankruptcy on 1st July 2020. On 16th June, the corporation raised up USD 8.93 billion of debt, including about USD 3.50 billion in long-term obligations to finance capital investments. The balance will be used to fund a portion of the group’s initial contribution to the AB 1054 wildfire fund and to finance claims at emergence from chapter 11. PG&E raised USD 374.00 million on revenue of USD 4.31 billion in the three months ended 31st March 2020, compared to USD 136.00 million on USD 4.01 billion in Q1 2019. © Zephus Ltd