Pacific Gas & Electric Co., the electric utility company that was forced into a Chapter 11 bankruptcy in 2001, in the wake of the California energy crisis, is looking to bring its first stranded cost securitization in seven years to the market before year-end. PG&E hopes to price the offering sooner rather than later, according to records, and currently plans to forge ahead despite having yet to receive Internal Revenue Service clearance to price the deal.
The offering, to be led by Morgan Stanley, will total $1.8 billion, with another $1.2 billion reportedly in the pipeline for 2005. Both deals will help refinance the company's high cost debt it incurred as is sunk into bankruptcy, sources said. The securitization program was outlined as part of the restructuring agreement.