PG&E Readies $11-B Debt Deal to Exit Chapter 11 Bankruptcy


Northern California’s utility giant PG&E Corp. (NYSE:PCG) is readying an $11-B debt-financing package for investors as soon as next week as the company prepares to exit Chapter 11 bankruptcy reorg.

The financing includes $4-B of high-yield bonds and a $750-M term loan led by JPMorgan Chase & Co. (NYSE:JPM). The remaining package consists of an investment-grade bond portion led by Bank of America Corp (NYSE:BAC).

PG&E shares rose 5.5% to 12.52 Friday after the reported the potential offering, triggering a volatility pause.

Bankers target a timeline of next week for the debt offerin, and PG&E is expected to market a $9-B equity offering later. The company has said in court papers that it expects to market the debt as soon as it gets confirmation of its plan as early as next week.

Representatives for PG&E, JPMorgan and Bank of America would not comment.

HeffX-LTN’s overall technical outlook for PCG is Very Bullish in here. Target 15/share.

Have a healthy weekend, Keep the Faith!

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