OAKLAND – PG&E Corporation (NYSE:PCG) announced today its plans to raise $2.4 billion through concurrent public offerings of common and mandatory convertible preferred stock. The energy holding company aims to use the proceeds for general corporate purposes, which may include funding its five-year capital investment plan.
The offerings consist of $1.2 billion in common stock and an equal amount in Series A Mandatory Convertible Preferred Stock, with a liquidation preference set at $50.00 per share. PG&E also expects to give underwriters a 30-day option to purchase up to an additional $180 million of each stock type to cover any over-allotments.
The preferred stock will convert into a variable number of common stock shares on or around December 1, 2027, unless converted earlier by the holders. The terms, including conversion and dividend rates, will be determined at the pricing time. PG&E plans to list the preferred stock on the New York Stock Exchange under the symbol "PCG-PrA."
Joint book-running managers for the offerings include J.P. Morgan, Barclays (LON:BARC), Citigroup (NYSE:C), BofA Securities, Mizuho (NYSE:MFG), and Wells Fargo (NYSE:WFC) Securities. A registration statement for these securities has been filed with the Securities and Exchange Commission and is now effective.
The offerings will be made through a prospectus supplement and accompanying prospectus, available from the SEC or by contacting the joint book-running managers directly.
PG&E Corporation, headquartered in Oakland, California, is the parent company of Pacific Gas and Electric Company, which serves approximately 16 million Californians across a vast service area.
This announcement does not serve as an offer to sell or a solicitation of an offer to buy these securities. The sale of the securities is not permitted in any jurisdiction where such an offer, solicitation, or sale would be unlawful.
The information in this article is based on a press release statement.
In other recent news, PG&E Corporation has seen noteworthy developments. The company's CEO, Patricia K. Poppe, has had her contract extended until January 4, 2031. Simultaneously, PG&E declared an increase in its fourth-quarter 2024 dividend to $0.025 per share, with a payout scheduled for January 15, 2025. The firm also projects consistent dividend growth, targeting a payout ratio of around 20% of non-GAAP core earnings per share by 2028.
PG&E Corporation has reaffirmed its earnings guidance, anticipating a non-GAAP Core Earnings Per Share (EPS) of $1.34-$1.37 for 2024 and a 10% year-over-year growth for 2025. Mizuho Securities has reaffirmed its Outperform rating for PG&E and increased the company's price target to $26.00.
The company completed a $500 million sale of 7.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due in 2055, raising the total outstanding principal amount for this series to $1.5 billion. Furthermore, the firm expanded its five-year capital plan by $1 billion, now totaling $63 billion through 2028. These are the recent developments shaping PG&E's financial and operational trajectory.
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