PG&E amends and restates credit facility providing for two new term tranches

By Sara Rosenberg

New York, June 26 - PG&E Corp. amended and restated its $1.02 billion credit agreement with General Electric Capital Corp. and Lehman Commercial Paper Inc. The new loan consists of a $600 million term loan A and a $420 million term loan B due Sept. 2, 2006, according to a filing with the Securities and Exchange Commission.

Lehman Commercial Paper acted as administrative agent and Lehman Brothers Inc. acted as lead arranger and book manager.

Both the term A and B have an interest rate of Libor plus 400 basis points, according to the filing.

Under the old credit agreement there was $692 million of outstanding borrowings. The new term A repaid $600 million of the previous loan with the remaining $92 million converted into the new term B, the filing said.

Security for the term A is a first priority lien on the company's equity interest in PG&E National Energy Group LLC, equity interest in NEG Inc. and certain cash interest reserves. Security for the term B is a second priority lien on equity interests in PG&E National Energy Group LLC, equity interest in NEG Inc. and by a first priority lien on certain other cash interest reserves.

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