PG&E launches cash tender offers for up to $1 billion of 2027 notes, bonds

PG&E Corp’s utility unit launched cash tender offers to buy up to $1 billion of debt due in 2027.

The offers cover $1.15 billion of 3.30% Senior Notes due Dec. 1, 2027, with priority over $1 billion of 2.10% First Mortgage Bonds due Aug. 1, 2027.

Pricing is set for July 31 using a Treasury-based spread of 20 basis points, and settlement is expected on Aug. 4.

Separately, the company issued a conditional notice to redeem $450 million of 5.450% First Mortgage Bonds due June 15, 2027, with an Aug. 6 target date.

The debt repurchase depends on completing new first mortgage bond financing or other transactions to fund the purchase price.