PG&E Corp Announces Proposed Offering of $1.5B Convertible Senior Secured Notes due 2027 to Repay Portion of Existing Term Loan
Portfolio Pulse from Benzinga Newsdesk
PG&E Corporation (NYSE:PCG) plans to offer $1.5 billion in Convertible Senior Secured Notes due 2027 to repay part of its existing $2.75 billion term loan. The company will also provide an option to purchase up to an additional $225 million of the notes. The term loan, with an interest rate of about 8.44%, is set to mature in June 2025.

November 29, 2023 | 11:48 am
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PG&E Corporation's announcement of a $1.5 billion convertible note offering to repay existing debt may be viewed positively as it could improve the company's debt profile.
The issuance of convertible notes by PG&E Corporation is likely to be seen as a positive step towards managing its debt obligations more efficiently, especially given the high interest rate on the existing term loan. This could lead to a short-term positive impact on the stock as it may reduce interest expenses and improve the balance sheet. However, the impact also depends on market conditions and investor perception of the company's long-term financial strategy.
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