Image source: PG&E Corp
(Reuters) – California-based power provider PG&E Corp said on Monday it plans to raise $5.75 billion from public offerings as it tries to emerge from Chapter 11 bankruptcy by the end of this month.
Separately, the company said investors, including Appaloosa and Third Point, have agreed to purchase up to $3.25 billion of its stock once the company exits bankruptcy.
PG&E said up to $1.25 billion of its common stock offering is expected to be reserved for large shareholders, while up to 25% will be allocated to individual investors.
The private placement will be at a maximum price of $10.50 per share, a discount of over 16% to the stock’s last close.
PG&E Corp’s shares fell 12.5% premarket on announcement of the planned fundraises.
The utility is also preparing an $11 billion debt-financing package, an investor involved with the company’s funding plan said on Friday.
Last month, the San Francisco-based utility’s reorganization plan had been approved by a California power regulator.
The company needs to exit bankruptcy by June 30 to participate in a state-backed wildfire fund that would help reduce the threat to utilities from wildfires.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Sriraj Kalluvila and Shailesh Kuber.
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Source: Reuters
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