PG&E stock falls on $1.2B common, preferred stock offerings

On Monday, PG&E (NYSE:PCG ) Corporation experienced a 3% drop in share prices following the announcement of its plans to launch concurrent public offerings. The energy company is offering $1,200 million worth of common stock alongside an equal amount of newly issued Series A Mandatory Convertible Preferred Stock, with the total offerings amounting to $2,400 million.

The company has also provided the underwriters a 30-day option to purchase additional shares, which could amount to $180 million of common stock and another $180 million of preferred stock in case of over-allotments. The proceeds from these offerings are earmarked for general corporate uses, which may include funding PG&E's five-year capital investment strategy.

Each unit of the preferred stock is assigned a liquidation preference of $50.00 and is set to automatically convert into common stock on or around December 1, 2027, unless holders choose to convert earlier. The specific terms, including conversion rates and dividend rate for the preferred stock, will be determined at the time of pricing. While the preferred stock is not currently traded on any public market, PG&E plans to apply for its listing on the New York Stock Exchange under the ticker symbol "PCG-PrA."

The offerings are being managed by a team of joint book-running managers, including prominent financial institutions such as J.P. Morgan, Barclays (LON:BARC ), Citigroup (NYSE:C ), BofA Securities, Mizuho (NYSE:MFG ), and Wells Fargo (NYSE:WFC ) Securities. The launch of these offerings represents a significant financial move for PG&E Corporation, as it seeks to bolster its capital structure and invest in future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com