(San Francisco, CA ) - PG&E
Corporation (NYSE: PCG) has secured an additional $300 million in
a new term loan agreement that amends and restates the company's
existing loan agreement and increases the total loan from $420 million
to $720 million. In addition, the Corporation and its lenders reached
an agreement that removes the prior investment grade ratings requirements
related to the PG&E National Energy Group and other potential events
of default related to PG&E National Energy Group. Lenders had previously
waived the credit rating requirements through October 18, 2002,
after PG&E National Energy Group lost its investment grade credit
rating in August.
The new loan agreement is
expected to provide the Corporation with ample liquidity resources
to fund its operations through at least 2006, when the loan matures.
The additional $300 million replaces a portion of the $600 million
loan the Corporation repaid to General Electric Capital on August
30, 2002.
As with the new loan agreement,
the Corporation also amended the terms of $280 million of 7.5% Convertible
Subordinated Notes issued in June 2002 to remove potential events
of default associated with PG&E National Energy Group. The amended
terms also increase the interest rate from 7.5% to 9.5%, and extend
the maturity of the notes from 2007 to 2010.
The full terms and conditions
of the new loan agreement and the amended terms for the notes will
be detailed in an 8-K filing with the U.S. Securities and Exchange
Commission.