PG&E rises amid backstop commitment news; Chesapeake better after term loan prices

By James McCandless

San Antonio, Dec. 11 – The distressed debt market continued to see focused activity in the utility and energy sectors on Wednesday.

PG&E Corp.’s notes rose after receiving new investors through new Chapter 11 plan backstop commitment letters.

The 6.05% notes due 2034 improved by ¼ point to close at 106 bid.

In a filing, the San Francisco-based bankrupt electric utility reported it entered into new Chapter 11 plan backstop commitment letters under which additional investors have agreed to fund up to $12 billion to finance plan transactions through the purchase of common stock, Prospect News reported.

As previously reported, the company initially entered into plan backstop commitment letters with investors who agreed to fund up to $14 billion to finance the plan, followed by additional letters entered in November.

Also on Wednesday, news broke that a group of creditors has been pushing for California governor Gavin Newsom to reject a $13.5 billion wildfire victim settlement that was reached last week.

In oil and gas, Chesapeake Energy Corp.’s issues saw better levels in the wake of pricing a new term loan and amending a tender offer.

The 8% senior notes due 2025 rose 1 point to close at 58 bid. The 8% senior notes due 2027 picked up 1 point to close at 60 bid.

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