PG&E (NYSE:PCG) Corporation has finalized the sale of $1 billion in junior subordinated notes with a 7.375% fixed-to-fixed reset rate, due in 2055. This financial move, completed on Monday, was established through a Subordinated Note Indenture, dated today, and further supplemented by the First Supplemental Indenture. The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., serves as the trustee for this transaction.
Legal opinions regarding the sale have been provided by Hunton Andrews Kurth LLP, also dated today. The completion of this sale marks a significant financial event for PG&E Corporation, which is known for its role in the energy and transportation sector, with a specific classification in electric and other services combined.
The notes are listed on the New York Stock Exchange under various trading symbols, including PCG for common stock and others for preferred stock categories. The completion of this sale is disclosed in accordance with SEC regulations and is based on the information contained in the recent SEC filing by PG&E Corporation.
In other recent news, PG&E Corporation has made significant financial strides. The company successfully completed the sale of $1 billion in junior subordinated notes due in 2055, and concluded a $1.75 billion bond sale involving two types of bonds due in 2025 and 2054.
Additionally, PG&E Corp and its subsidiary, PG&E Recovery Funding LLC, have issued $1.42 billion in Senior Secured Recovery Bonds, Series 2024-A. These developments are part of the company's financial strategy to manage its structure and obligations.
On the earnings front, PG&E reported a profitable second quarter, surpassing analysts' estimates due to increased service rates. The company experienced a 15.7% increase in its electric segment's revenue. However, the company has lowered its 2024 GAAP earnings forecast due to unrecoverable interest expenses and wildfire damage liabilities.
In analyst notes, JPMorgan upgraded PG&E's stock from Neutral to Overweight, while UBS and Mizuho Securities maintained a Buy rating. These changes reflect the ongoing financial restructuring and risk management strategies of PG&E Corp.
Furthermore, the company is committed to no new equity and has a focus on safety and affordability, with a plan to underground 250 miles of power lines this year as part of its wildfire risk mitigation efforts.
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