The utility accepted tenders for its 3.30% Senior Notes due in 2027 and 2.10% First Mortgage Bonds, also maturing in 2027. According to data provided by D.F. King & Co., the company received valid tenders for $1,067,357,000 in Senior Notes and $841,253,000 in First Mortgage Bonds. Because the total volume exceeded the company’s established purchase cap, the 2.10% First Mortgage Bonds are subject to an 18.2% proration factor to ensure compliance with the aggregate expenditure limit of $1,218,990,000.
PG&E Finalizes $1.2 Billion Debt Buyback
Pacific Gas and Electric Company has moved to retire over $1.2 billion in outstanding debt, concluding its cash tender offers for 3.30% Senior Notes and 2.10% First Mortgage Bonds. The utility company confirmed the final results following an expiration date of July 31, 2026, triggering a proration process for lower-priority bondholders.
The tender consideration, determined at 3:00 p.m. on the expiration date, includes accrued and unpaid interest for all accepted securities. PG&E utilized J.P. Morgan Securities LLC and Barclays Capital Inc. as dealer managers to oversee the transaction, which remains contingent upon the satisfaction of specific financing conditions. Investors were advised to consult independent tax and investment counsel, as the company issued no formal recommendation regarding the participation of bondholders in the tender process.
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