Pacific Gas & Electric Co. plans on issuing an additional $800 million energy recovery stranded cost ABS next month, according to a company official. PG&E Assistant Treasurer Nick Bijur confirmed the deal was imminent, and that Barclays Capital, Citigroup Global Markets and Morgan Stanley would jointly lead manage the offering.
This will be the second energy recovery bond of the year for San Francisco-based PG&E. The first, PG&E Energy Recovery Funding 2005-1, totaled $1.9 billion and priced via Citigroup, Lehman Brothers and Morgan Stanley in February. Barclays, a co-manager on the first deal of the year, will be rotated into a joint-lead role, while it is unclear what role Lehman will play in the upcoming offering. The selling group for the series 2005-1 transaction also consisted of ABN AMRO, BNP Paribas, Deutsche Bank Securities and M.R. Beal & Co.