PG&E extends maturities, reduces rates for corporation, utility revolvers

By Rebecca Melvin

Concord, N.H., June 23 – PG&E Corp. and Pacific Gas and Electric Co. amended their respective revolving credit agreements on Tuesday to extend their maturities and reduce the pricing grids for interest rate and commitment fees. Funding commitments provided by the utility revolver were increased to $4 billion, according to an 8-K filed with the Securities and Exchange Commission.

Specifically, PG&E, its banks and JPMorgan Chase Bank, NA, as administrative agent and collateral agent, entered into the first amendment to its July 1, 2020, corporation credit agreement to extend its maturity date to June 22, 2024.

The interest rate on borrowings was trimmed on the lower end of the grid for a range of Libor plus 200 bps to 425 bps, depending on its rating agency ratings. The previous range was 300 bps to 425 bps.

Commitment fees were dropped to 35 bps to 75 bps, depending on ratings, from a previous range of 50 bps to 75 bps.

In addition to JPMorgan Chase, the lenders of the corporation credit agreement include Bank of America NA, Barclays Bank plc, Citibank NA, Citicorp North America Inc., Goldman Sachs Bank USA, Wells Fargo Bank NA, as co-syndication agents, and BNP Paribas, Credit Suisse AG, New York Branch, Mizuho Bank Ltd., MUFG Union Bank NA, Bank of Montreal, Chicago Branch as co-documentation agents.

Under a utility revolver among Pacific Gas and Electric Co., its banks and JPMorgan Chase and Citibank NA, as co-administrative agents, the maturity was extended by two years to June 22, 2026.

The range of interest rates on borrowings was reduced to 112.5 bps to 200 bps, based on ratings, from the previous range of 127.5 bps to 225 bps.

Commitment fees were dropped to 12.5 bps to 35 bps from 25 bps to 42.5 bps, based on ratings.

Citibank NA is administrative agent and designated agent, BofA Securities Inc., Barclays Bank plc, Goldman Sachs Bank USA, Wells Fargo Bank NA are co-syndication agents and BNP Paribas, Credit Suisse AG New York Branch, Mizuho Bank Ltd., MUFG Union Bank NA, Wells Fargo Bank NA and Bank of Montreal Chicago Branch are co-documentation agents.

PG&E is the parent company of San Francisco-based utility, Pacific Gas and Electric.

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