As previously reported, on January 14, 2019, PG&E Corporation (the “Corporation”) and its regulated utility subsidiary, Pacific Gas and Electric Company (the “Utility”), reported that they currently expect that they will commence reorganization cases under Chapter 11 of the U.S. Bankruptcy Code (“Chapter 11”) in the U.S. Bankruptcy Court for the Northern District of California (the “Bankruptcy Court”) on or about January 29, 2019, following the expiration of a 15-day advance notice period mandated under recently enacted California law. Also on January 14, 2019, the Corporation and the Utility reported that they had engaged in discussions with potential lenders with respect to debtor-in-possession (“DIP”) financing. The Corporation and the Utility collectively are referred to as “PG&E” in an 8-K filed today concerning the DIP financing, but each of the Corporation and the Utility is a separate entity, with distinct creditors and claimants, and is subject to separate laws, rules and regulations.

On January 21, 2019, the Corporation and the Utility entered into a commitment letter for debtor-in-possession financing (the “DIP Commitment Letter”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), Bank of America, N.A., Barclays Bank PLC and Citigroup Global Markets Inc. (collectively, the “Commitment Parties”) pursuant to which the Commitment Parties committed to provide $5.5 billion in senior secured superpriority debtor-in-possession credit facilities in the form of (i) a revolving credit facility in an aggregate amount of $3.5 billion (the “DIP Revolving Facility”), (ii) a term loan facility in an aggregate principal amount of $1.5 billion (the “DIP Initial Term Loan Facility”) and (iii) a delayed draw term loan facility in an aggregate principal amount of $500 million (together with the DIP Revolving Facility and the DIP Initial Term Loan Facility, the “DIP Facilities”), subject to the terms and conditions set forth therein

Further details concerning the DIP financing can be found in this form 8-K

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Finance   Pacific Gas & Electric   PG&E   California  

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