SAN FRANCISCO, April 17, 2012 /PRNewswire/ -- Pacific Gas
and Electric Company (PG&E) selected Loop Capital Markets, an
African American-owned investment bank headquartered in
Chicago, to be one of four joint
lead managers, along with Goldman Sachs, JP Morgan, and Wells Fargo
Securities, for a $400 million
offering of 30-year senior notes that closed yesterday.
The company also engaged two other diverse firms – woman-owned
MFR Securities in New York and
service disabled veteran-owned Mischler Financial Group in
Southern California – to join BNY
Mellon Capital Markets, LLC and RBC Capital Markets as co-managers
for the deal.
"We are proud to work with these firms to complete this
transaction," said Kent Harvey,
Senior Vice President and Chief Financial Officer of PG&E
Corporation. "The low-cost financing this provides represents a
great outcome for our customers, and it's another example of the
way PG&E is continuing to leverage the capabilities of diverse
suppliers in keeping with our strong commitment to supplier
diversity."
This bond transaction represents the third that PG&E has
completed with a minority-owned investment bank as a lead manager.
The bonds mature on April 15, 2042,
and bear an interest rate of 4.45 percent – a record-low 30-year
coupon for PG&E. The bonds are rated "A3" by Moody's Investors
Service and "BBB" by Standard & Poor's. Proceeds from the bonds
will be used primarily for general corporate purposes, including
repaying a portion of the utility's outstanding commercial
paper.
"We were delighted to work with PG&E on this important
transaction," said Jim Reynolds,
Chairman and Chief Executive Officer of Loop Capital Markets. "The
company was patient in accessing the markets and really benefitted
from enthusiastic participation by a broad range of investors
seeking to have a high-quality bond in their portfolio."
"Supporting the development of women-, minority-, or disabled
veteran-owned investment banks is an important step in helping meet
diversity procurement goals," said Commissioner Timothy Alan Simon of the California Public
Utilities Commission (CPUC). "The CPUC will continue to work with
California utilities to assure
that diverse businesses fully participate in our state's economic
gains."
Diversity and inclusion have long been hallmarks of PG&E's
heritage. Earlier this month, PG&E was named Corporation of the
Year by the Northern California Minority Supplier Development
Council for the utility's commitment to minority business
development. The award is among a number of recent accolades for
PG&E, which spent a record $1.6
billion with diverse suppliers in 2011.
"Diverse companies offer a wealth of innovation," said
Michael R. Peevey, President of the
CPUC, which encourages utilities to procure a percentage of goods
and services from diverse companies. "Procuring from diverse
suppliers only strengthens PG&E's supply network and creates
jobs and economic growth for the communities it serves."
For information on PG&E's supplier diversity program or to
learn how to apply to become a certified diverse supplier, visit
www.pge.com/supplierdiversity/.
Pacific Gas and Electric Company, a subsidiary of PG&E
Corporation (NYSE:PCG), is one of the largest combined natural gas
and electric utilities in the United
States. Based in San
Francisco, with 20,000 employees, the company delivers some
of the nation's cleanest energy to 15 million people in Northern
and Central California. For more
information, visit http://www.pge.com/about/newsroom/ and
www.pgecurrents.com.
SOURCE Pacific Gas and Electric Company