#United States #Oakland #PG&E Corporation #Common Stock #Convertible Preferred

PG&E Corporation Announces Significant Stock Offerings

On December 2, 2024, PG&E Corporation (NYSE: PCG) unveiled plans for two substantial public offerings aimed at raising capital for its ambitious growth and investment plans. The company is set to issue $1.2 billion in common stock, alongside $1.2 billion in newly created Series A Mandatory Convertible Preferred Stock.

These concurrent offerings reflect PG&E’s commitment to enhancing its operational capabilities while addressing the pressing needs of its infrastructure. In a significant move, the company has provided the underwriters with a 30-day option to acquire further shares amounting to an additional $180 million, both for the common and preferred stock categories. This strategic financing is poised to support the ongoing five-year capital investment plan that PG&E has initiated, emphasizing the pivotal role of these funds in fostering improvement within the service area.

Each share of Preferred Stock promises a liquidation preference of $50.00. Unless holders convert their stocks earlier, they are set to be transformed into a variable number of common stock shares around December 1, 2027, dictated by the conversion rate that will be established at pricing. Though there is currently no public market for these preferred stocks, PG&E plans to apply for listing on the New York Stock Exchange under the symbol "PCG-PrA."

The financial heavyweights steering this offering include J.P. Morgan, Barclays, and Citigroup, acting as joint book-running managers. They are joined by BofA Securities, Mizuho, and Wells Fargo Securities in this capital-raising endeavor. This strategic collaboration aims to ensure effective execution of the offerings, reflecting PG&E’s proactive approach in a competitive financial environment.

A registration statement concerning these securities has already been filed with the U.S. Securities and Exchange Commission (SEC), having become effective. Interested investors can access the offering’s preliminary prospectus supplements via the SEC's website or by contacting the mentioned financial institutions directly.

It's important to note that this announcement does not serve as a solicitation to partner or invest; it is purely informational as PG&E navigates through critical financing stages. As part of a larger investor engagement strategy, PG&E Corporation is keen on illustrating its financial stability and growth potential to foster community and investor confidence.

About PG&E Corporation

PG&E Corporation, listed on the New York Stock Exchange under the ticker PCG, operates as the parent company of Pacific Gas and Electric Company, which delivers energy solutions to approximately 16 million customers throughout a vast service area in Northern and Central California across 70,000 square miles.

While there are inherent risks and uncertainties associated with these ventures, the company is committed to transparent communication regarding forward-looking statements and potential impacts. These include anticipated future capital expenditures, forecasted earnings, operating costs, and the overarching impact of regulatory constraints and external market dynamics.

In summary, PG&E Corporation’s recent announcements are pivotal as they not only entail significant financial maneuvers but also signal the company's ongoing dedication to improving its infrastructure amid a backdrop of evolving energy demands and regulatory landscapes. This proactive financial strategy is critical for sustaining its long-term growth and service reliability, ultimately reinforcing PG&E's role as a leader in California’s energy sector.