(San Francisco, CA) - PG&E Corporation (NYSE:PCG) on Tuesday said its Pacific Gas and Electric Company (PG&E) utility subsidiary issued $600 million of Senior Notes on November 13, 2008, consisting of $400 million of Senior Notes due December 1, 2013 at a yield of 6.42 percent and $200 million of Senior Notes due October 15, 2018 at a yield of 7.60 percent. This transaction completes over $1.6 billion of capital PG&E has raised in the last two months amid unprecedented volatility in the credit markets.
"Access to the capital markets has been severely limited over the past few months due to the credit crisis. We've been closely monitoring access to the credit markets for the past several weeks, seeking an opportunity to increase our liquidity so that we can continue to strengthen our balance sheet. These issuances have provided PG&E with added flexibility in a very challenging market," said Christopher Johns, Chief Financial Officer and Treasurer of PG&E Corporation.
Proceeds from the recent $600 million transaction, together with the earlier financings, will be used to reduce short-term debt, fund capital expenditures and repay $600 million of long-term debt maturing in March 2009. These transactions will allow PG&E to continue to make the necessary investments in its infrastructure to improve energy services for customers.
PG&E Corporation is the parent holding company of Pacific Gas and Electric Company, one of the largest combined natural gas and electric utilities in the United States. Based in San Francisco, with 20,000 employees, Pacific Gas and Electric Company delivers some of the nation's cleanest energy to 15 million people in northern and central California.