SPY333.84+1.73 0.52%
DIA273.49+1.49 0.55%
IXIC11,088.85+90.45 0.82%

PG&E Provides Update On Equity Exit Financing Over-Allotment Outcome; Expects to Issue an Additional 748,415 Shares of Common Stock to PG&E Fire Victim Trust

PG&E Corporation (NYSE: PCG) today announced that the underwriters of its previously announced underwritten public offering of equity units, which closed on July 1, 2020, have exercised in full their over-allotment option to purchase an additional 1,454,54

Benzinga · -
PG&E Corporation (NYSE: PCG) today announced that the underwriters of its previously announced underwritten public offering of equity units, which closed on July 1, 2020, have exercised in full their over-allotment option to purchase an additional 1,454,545 prepaid forward stock purchase contracts to create 1,454,545 equity units (the "additional equity units issuance"), for total net proceeds to PG&E Corporation (before estimated offering expenses) of approximately $119 million. The underwriters' option to purchase up to an additional 42,337,263 shares of common stock expired without exercise. PG&E Corporation expects to settle the additional equity units issuance on August 3, 2020. In connection with the additional equity units issuance, PG&E expects to effect the following transactions on August 3, 2020: PG&E expects to redeem approximately $121 million of previously announced prepaid forward stock purchase contracts entered into with certain investors in order to backstop the over-allotment option granted to the underwriters in connection with the public offering of equity units. PG&E expects to issue approximately $402 million of shares of common stock to such investors in respect of all unredeemed prepaid forward stock purchase contracts at a settlement price per share of $9.50, which is approximately 42.3 million shares. Pursuant to a true-up mechanism entered into in connection with PG&E's Plan of Reorganization (the "Plan"), PG&E expects to issue an additional 748,415 shares of common stock to the PG&E Fire Victim Trust. Such shares, together with all other shares of common stock previously issued to the PG&E Fire Victim Trust, represent 22.19% of the outstanding common stock of PG&E Corporation as of the effective date of the Plan (assuming all the equity transactions specified in the Plan, including the additional equity units issuance, were consummated on such effective date). Closing of the additional equity units issuance is subject to the satisfaction or waiver of customary closing conditions.