PG&E secures $5.5 billion in DIP financing to fund operations through bankruptcy
PG&E Corp. disclosed Tuesday that it has entered into a commitment letter for $5.5 billion in debtor-in-possession (DIP) financing from J.P. Morgan Chase & Co. Bank of America Corp. , Citigroup Inc. and Barclays PLC , ahead of the utility company's planned bankruptcy filing on Tuesday. PG&E expects the DIP financing will provide it with "sufficient liquidity to fund its ongoing operations. The company expects the Chapter 11 cases to take about two years. The DIP financing is in the form of a $3.5 billion revolving credit facility, a $1.5 billion term loan and a $500 million delayed draw term loan facility. PG&E's bankruptcy filing comes as it faces more than $30 billion in potential liability related to itsrole in the recent California wildfires. The stock slipped 0.4% in premarket trade. It has plunged 85% over the past three months through Friday, while the Dow Jones Utility Average has slipped 4.8% and the Dow Jones Industrial Average has declined 2.4%.
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