California-based utility Pacific Gas & Electric (PG&E) has been granted court approval to take on a $5.5 billion loan, financed by JPMorgan Chase & Co, Bank of America Merrill Lynch, Barclays Plc and Citigroup Inc.
The financing will comprise a $3.5 billion in revolving credit, a $1.5 billion term loan and a $500 million delayed-draw term loan.
The California utility, the largest in the US, filed for bankruptcy in January 2019 following multi-billion dollar fines, and ongoing court cases resulting from the ever-worsening wildfire season in the state. The most catastrophic blaze in the state’s history, known as the “Camp fire” resulted in the death of 86 people, and was blamed on PG&E’s equipment and vegetation maintenance.
Investment banks JPMorgan Chase & Co, Bank of America Merrill Lynch, Barclays Plc and Citigroup Inc will provide financing, the company said in a filing.