PG&E ups term loan B to $2.75 billion, firms at Libor plus 450 bps

By Sara Rosenberg

New York, June 18 – PG&E Corp. upsized its five-year senior secured term loan B to $2.75 billion from $1 billion and finalized pricing at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, according to a market source.

In addition, the original issue discount on the term loan was changed to 98.5 from 98, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for one year.

J.P. Morgan Securities LLC, BofA Securities, Inc., Barclays, Citigroup Global Markets Inc. and Goldman Sachs Bank USA are the leads on the deal.

Proceeds will be used to help fund the company’s exit from Chapter 11.

Other funds for the bankruptcy exit are expected to come from a $500 million revolving credit facility, a $3.5 billion revolver at Utility, $2 billion of senior secured high-yield notes, which were downsized from $3.75 billion with the term loan upsizing, and first mortgage bonds.

PG&E is a San Francisco-based electric and natural gas utility. The company filed bankruptcy on Jan. 29, 2019 in the U.S. Bankruptcy Court for the Northern District of California under Chapter 11 case number 19-30088.

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