PG&E offers first mortgage bonds in three parts, including add-on

Chicago, Nov. 10 – Pacific Gas & Electric Co. is in the market with a three-part offering of first mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission.

One part will be a floating-rate tranche with a rate based on a margin over SOFR. The series will be non-callable.

A second part will be fixed rate. The notes will have a par call date.

A third tranche is an add-on to the $450 million 3.25% bonds due 2031 issued on March 8, 2021. The 2031 bonds have a make-whole call at Treasuries plus 25 basis points. The notes can be redeemed any time after March 1, 2031 at par.

Barclays, Citigroup Global Markets Inc., MUFG and Wells Fargo Securities, LLC are joint bookrunning managers of the offering.

Bank of New York Mellon Trust Co., NA is the trustee.

Cravath, Swaine & Moore LLP and Hunton Andrews Kurth LLP are listed as counsel.

PG&E expects to use the proceeds to repay the $1.45 billion of floating-rate first mortgage bonds due Nov. 15. Remaining proceeds will be used for general corporate purposes, including the repayment of approximately $300 million under the company’s utility revolving credit facility.

The electric and natural gas utility is based in San Francisco.

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