PG&E cuts spread on $750 million term loan B to SOFR plus 250 bps

By Sara Rosenberg

New York, Dec. 4 – PG&E Corp. lowered pricing on its $750 million term loan B due June 2027 to SOFR plus 250 basis points from talk in the range of SOFR plus 275 bps to 300 bps, according to a market source.

As before, the term loan has a 0.5% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

JPMorgan Chase Bank is the lead on the deal.

Commitments were scheduled to be due at noon ET on Monday, accelerated from 5 p.m. ET on Monday, the source added.

Proceeds will be used to extend an existing term loan B from June 23, 2025.

The existing term loan B is sized at about $2.66 billion, but a portion of the debt is being repaid with proceeds from a $1.9 billion convertible senior secured notes offering.

The company said in a recent press release that it intends to use the net proceeds from the convertibles offering plus cash on hand to prepay $1.9 billion of the term loan B, and may prepay another up to $250 million of the term loan B if the initial purchasers exercise their option to purchase additional convertible notes.

PG&E is an Oakland, Calif.-based energy company.

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