Pacific Gas and Electric Company’s $3.6 Billion Notes Offering

Hunton Andrews Kurth LLP advised Pacific Gas and Electric Company on the deal.

Pacific Gas and Electric Company (“PG&E”) and PG&E Wildfire Recovery Funding LLC announced a SEC-registered offering of $3.6 billion aggregate principal amount of Senior Secured Recovery Bonds, Series 2022-A (the “Bonds”) by the Issuer, a special purpose entity, wholly-owned by PG&E, as sponsor, depositor and servicer.  The Bonds were sold pursuant to a financing order issued by the California Public Utilities Commission and California’s securitization statute, which was adopted to address costs associated with wildfires (the “Wildfire Financing Law”).  The Bond proceeds will be used to purchase recovery property from PG&E.  In accordance with the financing order, PG&E will use the proceeds to reimburse itself for previously-incurred recovery costs, including the retirement of certain debt.  This offering, which is the fourth utility securitization pursuant to the Wildfire Financing Law, closed on May 10, 2022. 

The Issuer is organized as a Delaware limited liability company and PG&E is its sole member. It was formed for the purpose of purchasing, owning and administering recovery property, issuing the Bonds and performing activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick (Picture), Adam O’Brian, Patrick Jamieson, Michelle G. Chan and Matthew A. Hayes.  Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Eric Nedell and Robert Johnson assisted with certain UCC/security interest matters, and Cary Tolley, Anna Page and Tim Strother provided tax advice.

Involved fees earner: Michael Fitzpatrick Jr. – Hunton Andrews Kurth LLP; Jason Harbour – Hunton Andrews Kurth LLP; Matthew Hayes – Hunton Andrews Kurth LLP; Patrick Jamieson – Hunton Andrews Kurth LLP; Robert Johnson – Hunton Andrews Kurth LLP; Anna Knecht Page – Hunton Andrews Kurth LLP; Eric Nedell – Hunton Andrews Kurth LLP; Adam O’Brian – Hunton Andrews Kurth LLP; Kate Perkins – Hunton Andrews Kurth LLP; Shawn Patrick Regan – Hunton Andrews Kurth LLP; Tim Strother – Hunton Andrews Kurth LLP; Cary Tolley – Hunton Andrews Kurth LLP;

Law Firms: Hunton Andrews Kurth LLP;

Clients: Pacific Gas and Electric Company;

Martina Bellini

Author: Martina Bellini