PG&E notes up after regulators approve restructuring; Party City jumps in retail space

By James McCandless

San Antonio, May 29 – The holiday-shortened week came to a close, marked by a positive tone in the distressed debt market.

PG&E Corp.’s notes improved after state regulators approved its plan for reorganization as the utility seeks to exit bankruptcy.

The 6.05% notes due 2034 gained ¼ point to close at 114¼ bid.

After the close on Thursday, the San Francisco-based bankrupt electric utility and Pacific Gas and Electric Co. announced that their Chapter 11 plan of reorganization was approved on Thursday by the California Public Utilities Commission, Prospect News reported.

Concurrently, the company was granted its request to issue new debt and securities to finance its bankruptcy exit.

Meanwhile, in retail, Party City Holdco Inc.’s issues jumped higher after announcing a transaction support agreement with creditors.

The 6 1/8% senior notes due 2023 shot up 11 points to close at 16½ bid. The 6 5/8% senior notes due 2026 pushed up 11¾ points to close at 15¾ bid.

During the Friday session, the Elmsford, N.Y.-based party supplies chain announced a transaction support agreement with holders of more than 52% of the two series of notes.

The actions are expected to deleverage the company’s balance sheet by about $450 million while raising $100 million in new capital.

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