PG&E Shares Decline Following $1.2 Billion Common and Preferred Stock Offering

On Monday, PG&E Corporation's stock prices fell by 3% following the announcement of its simultaneous public offering plans. The energy company is offering $1.2 billion worth of common stock and the same amount in newly issued Series A Mandatory Convertible Preferred Stock. The total offering amount reaches $2.4 billion.

The company also provided underwriters with a 30-day option to purchase an additional $180 million worth of common stock and $180 million worth of preferred stock in case of excessive demand. Proceeds from these offerings will be used for general corporate purposes, including financing PG&E's five-year capital investment strategy.

Each unit of the preferred stock has a liquidation value of $50.00 and will automatically convert into common stock around or on December 1, 2027, although holders may choose to convert earlier. Specific terms like conversion rates and dividend rates for the preferred stock will be determined during pricing. The preferred stock is currently not listed on any public market; however, PG&E plans to apply for listing on the New York Stock Exchange under the ticker symbol "PCG-PrA."

The offerings are managed by a joint book-running team that includes leading financial institutions such as J.P. Morgan, Barclays, Citigroup, BofA Securities, Mizuho, and Wells Fargo Securities. The initiation of these offerings represents a significant financial move aimed at strengthening PG&E Corporation's capital structure and investing in future growth.