PG&E secures final approval to access $5.5 billion of DIP financing

By Caroline Salls

Pittsburgh, March 28 – PG&E Corp. obtained final court approval to access $5.5 billion of debtor-in-possession financing, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Northern District of California.

JPMorgan, Bank of America, Barclays, Citi, BNP Paribas, Credit Suisse, Goldman Sachs, MUFG Union Bank and Wells Fargo are acting as joint lead arrangers.

As previously reported, PG&E said in a news release that the DIP financing would provide it with “necessary capital to ensure essential maintenance and continued investments in safety and reliability for the expected duration of the Chapter 11 cases.”

The financing will mature on Dec. 31, 2020, subject to the borrower’s option to extend the term by an additional 12 months in exchange for the payment of a 25-basis points extension fee on the then outstanding loans and commitments.

The electric and natural-gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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