PCG.PR.X: 6.00% Mandatory Convertible Preferred Stock IPO From PG&E Corporation
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PG&E Corporation has launched a new 6.00% Series A Mandatory Convertible Preferred Stock (PCG.PR.X), which offers a cumulative annual dividend and a conversion clause based on the common stock price. The stock is trading at $50.11 with a Yield to Maturity of 5.92%, but is considered overvalued compared to similar duration OTC bonds. PG&E's capital structure shows a poor coverage ratio, posing a high risk for preferred shareholders if the company's reorganization fails.
January 07, 2025 | 3:30 pm
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PG&E Corporation's new preferred stock (PCG.PR.X) is overvalued compared to similar bonds, and the company's poor coverage ratio indicates high risk for preferred shareholders.
The new preferred stock is trading at a premium compared to similar bonds, indicating it may be overvalued. Additionally, PG&E's poor coverage ratio suggests financial instability, increasing risk for preferred shareholders.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90