Pacific Gas & Electric Co Issues $1.7B First Mortgage Bonds

What Happened

• Pacific Gas and Electric Company entered into an underwriting agreement on July 27, 2026 and completed the sale on August 4, 2026 of two series of First Mortgage Bonds. The issuance consists of $700,000,000 of 5.250% First Mortgage Bonds due 2032 and $1,000,000,000 of 5.850% First Mortgage Bonds due 2036. Underwriters included Barclays Capital Inc., BMO Capital Markets Corp., J.P. Morgan Securities LLC, and SMBC Nikko Securities America, Inc. The company filed the transaction in an 8-K and included a Thirty-Fifth Supplemental Indenture (with The Bank of New York Mellon Trust Company, N.A. as Trustee) and a legal opinion from Hunton Andrews Kurth LLP as exhibits.

Key Details

• Total proceeds: $1,700,000,000 in aggregate principal.
• 2032 Bonds: $700,000,000 principal; fixed coupon 5.250%; maturity 2032.
• 2036 Bonds: $1,000,000,000 principal; fixed coupon 5.850%; maturity 2036.
• Underwriting agreement dated July 27, 2026; sale completed August 4, 2026; Thirty-Fifth Supplemental Indenture and counsel opinion filed as exhibits.

Why It Matters

• The company raised $1.7 billion of secured, long‑term fixed‑rate debt, which increases Pacific Gas & Electric’s long‑term liabilities and future interest obligations. Because these are First Mortgage Bonds, they are secured by utility property and hold priority over unsecured debt. Retail investors should note the fixed coupon rates (5.25% and 5.85%) as they affect interest expense and credit metrics; monitor future filings for disclosure of use of proceeds, impacts on leverage, and any rating agency commentary.