Pacific Gas and Electric Company (PG&E (NYSE:)) and its subsidiary, PG&E Recovery Funding LLC, have entered into an underwriting agreement with a group of investment banks to issue $1.42 billion in Senior Secured Recovery Bonds, as detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC). The transaction took place on Wednesday, with Goldman Sachs & Co (NYSE:). LLC, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC acting as representatives of the underwriters.
The bonds, which are to be issued as Series 2024-A, will be secured by the company and are scheduled to be dated August 1, 2024. The offering was made under a prospectus released on the same day as the underwriting agreement. Alongside the bond issuance, PG&E and PG&E Recovery Funding LLC anticipate entering into several related agreements, including a Recovery Property Servicing Agreement, Recovery Property Purchase and Sale Agreement, Administration Agreement, and Joinder Agreement, all of which will also be dated August 1, 2024.
The Recovery Bonds will be managed by The Bank of New York Mellon (NYSE:) Trust Company, N.A., as evidenced by the form of Indenture and Series Supplement attached to the SEC filing. The additional agreements related to the bond issuance are aimed at outlining the administration and servicing of the recovery property associated with the bonds.
This bond issuance comes as part of PG&E’s financial strategy and reflects an ongoing process of securing funds for its operations and investments. The company’s stock is traded on the NYSE American LLC under various symbols, including PCG-PA, PCG-PB, and PCG-PC, among others.
The 8-K filing also includes a signature from Stephanie N. Williams, Vice President, Chief Financial Officer and Controller of Pacific Gas and Electric Company, and Margaret K. Becker, President of PG&E Recovery Funding LLC, attesting to the accuracy of the report.
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