PG&E Sets Pricing for $1.2 Billion Debt Buyback

The company determined the consideration for the debt buyback by applying a fixed spread over current U.S. Treasury yields. Holders of the 3.30% senior notes will receive $985.34 per $1,000 in principal, while those holding 2.10% first mortgage bonds are set to receive $977.95 per $1,000. These figures include the applicable fixed spread of 20 basis points over the reference Treasury securities. Payments will also include accrued interest up to the expected August 4, 2026, settlement date.

Preliminary data from D.F. King & Co. indicates a high interest in the offer, necessitating the partial pro-ration of the 2.10% mortgage bonds. While the company expects to accept all senior notes in full, officials caution that final proration figures remain subject to change until the formal expiration of the offer. J.P. Morgan Securities LLC and Barclays Capital Inc. are managing the transaction, which remains contingent upon the satisfaction of specific financing conditions outlined in the company's official offer documents.