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Pacific Gas & Electric to issue first mortgage bonds in three parts
By Mary-Katherine Stinson
Lexington, Ky., June 1 – Pacific Gas & Electric Co. plans an add-on offering of 6.75% first mortgage bonds due Jan. 15, 2053 and two additional new tranches of first mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission.
The terms of the 2053 mortgage bonds, other than their issue date, the initial interest accrual date and public offering price, will be identical to the terms of the $750 million of 6.75% first mortgage bonds due 2053 offered and sold on Jan. 4. They will trade interchangeably with the existing 2053 mortgage bonds of the same series immediately upon settlement.
The add-on bonds will accrue interest from, and including, Jan. 6.
The mortgage bonds will feature a make-whole call option followed by a par call option. The 2053 bonds will feature a make-whole call before July 15, 2052, followed by a par call.
Barclays, BofA Securities, Inc., Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.
Bank of New York Mellon Trust Co., NA is the mortgage trustee.
Hunton Andrews Kurth LLP will act as counsel for the issuer. Davis Polk & Wardwell LLP will be counsel for the underwriters.
Proceeds will be used to repay all $375 million of 3.25% first mortgage bonds due June 15 and the $500 million of 4.25% first mortgage bonds due Aug. 1 at maturity. PG&E expects to use the remaining net proceeds from the offering for general corporate purposes, including the repayment of borrowings outstanding under a utility revolving credit facility.
As of May 22, borrowings under the revolver totaled about $1.36 billion.
The electric and natural gas utility is based in San Francisco.
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