PG&E raises over $ 5 billion in shares, sale of capital units

(Bloomberg) – PG&E Corp. raised more than $ 5 billion in a common stock and shares unit that offers help to finance its exit from the largest utility bankruptcy in the history of the United States.

The California energy giant sold more than 420 million shares at $ 9.50 each, it said in a statement dated Friday, representing a 2.4% discount as of Thursday’s close of $ 9.73. The sale of shares, as well as the separate offering of capital units, which have a coupon of 5.50%, was worth the company about $ 5.15 billion, according to the statement.

The effort is one of the biggest share offerings of the year and part of the company’s plan to raise $ 9 billion in capital to help pay for wildfire claims through its Chapter 11 case. PG&E has also raised more $ 13 billion in debt markets to finance his bankruptcy, which started after his team caused deadly fires in Northern California.

PG&E said it expects to exit Chapter 11 around July 1. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are underwriting the offer. Barclays Plc, Citigroup Inc. and BofA Securities Inc. are joint book administration managers.

The increase announced on Friday brought in $ 5.5 billion gross, according to people with knowledge of the matter, who asked not to be identified since the information is not public. The company launched the offering on Monday with the intention of raising total gross revenue of $ 5.23 billion.

PG&E filed for Chapter 11 last year facing $ 30 billion in liabilities for the fires, some of the worst in California history. They included the Camp Fire, which destroyed the city of Paradise and killed more than 80 people. The company pleaded guilty last week to 84 counts of manslaughter. State regulators fined PG&E $ 1.9 billion in connection with the fires.

PG&E is raising money to help cover $ 25.5 billion in damages claims it settled in its bankruptcy through settlements with fire victims, insurers, and local government agencies.

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