PG&E offers two first mortgage bonds, add-on to 6.75% notes due 2053

Chicago, Feb. 26 – Pacific Gas & Electric Co. is offering two fixed-rate first mortgage bonds and an add-on to its 6.75% first mortgage bonds due 2053, according to a 424B5 filing with the Securities and Exchange Commission.

The add-on will actually be the second additional offering, with the terms the same as the original $750 million of notes issued on Jan. 4, 2023 and the $500 million of notes issued on June 1, 2023. The notes will be fungible and trade under the same Cusip identifier.

Initially, the notes will be callable with make-whole premiums then later at par. For the add-on, the terms are that the bonds are callable with a Treasuries plus 45 basis points make-whole premium and then the par call starts July 15, 2052, six months before maturity.

Barclays, BMO Capital Markets Corp., BNP Paribas Securities Corp. and BofA Securities, Inc. are listed as joint bookrunners.

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

The company is being advised by Hunton Andrews Kurth LLP. The underwriters are using Davis Polk & Wardwell LLP for legal matters.

Proceeds will be used to repay borrowings under the company’s utility revolving credit facility. As of Feb. 21, there was $2.35 billion outstanding on the credit facility with interest based on a floating rate currently at 7.17%.

The electric and natural gas utility is based in Oakland, Calif.

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