PCG: PG&E Gets Credit

By William Trent, CFA of Stock Market Beat

Large Cap Watch List member PG&E CORP (PCG) filed a Form: 8-K detailing changes to its credit facilities:

The Restated Utility Credit Agreement increases the aggregate amount available under this agreement by $650 million to a total of $2.0 billion. Subject to obtaining commitments from existing or new lenders and satisfying other conditions specified in the Restated Utility Credit Agreement, the Utility may increase the aggregate commitments under this credit agreement to $3.0 billion. The Restated Utility Credit Agreement has an initial term of five years and, unless extended, all amounts will be due and payable on February 26, 2012. At the Utility’s request and at the sole discretion of each lender, the Restated Utility Credit Agreement may be extended for additional periods.Under the Restated Utility Credit Agreement, the Utility will pay reduced fees and interest rate spreads.

The new agreement is unlikely to have a huge impact on the company’s earnings, as there were no outstanding borrowings under the old facility. But it does give them extra access to capital and at lower cost for any instances that they might need it, and that is always a good thing.

http://stockmarketbeat.com/blog1/