PG&E 2007 Annual Report Download - page 108

106
CREDIT FACILITIES AND SHORT-TERM BORROWINGS
The following table summarizes PG&E Corporation’s and the Utility’s short-term borrowings and outstanding credit facilities
at December 31, 2007:
(in millions) At December 31, 2007
Letters Commercial
Termination Facility of Credit Cash Paper
Authorized Borrower Facility Date Limit Outstanding Borrowings Backup Availability
PG&E Corporation Senior credit facility February 2012 $ 200(1) $ — $ — $ — $ 200
Utility Working capital facility February 2012 2,000(2) 165 250 270 1,315
Total credit facilities $2,200 $165 $250 $270 $1,515
(1) Includes $50 million sublimit for letters of credit and $100 million sublimit for swingline loans, which are made available on a same-day basis and
repayable in full within 30 days.
(2) Includes a $950 million sublimit for letters of credit and $100 million sublimit for swingline loans, which are made available on a same-day basis and
repayable in full within 30 days.
PG&E CORPORATION
Senior Credit Facility
PG&E Corporation has a $200 million revolving senior
unsecured credit facility (“senior credit facility”) with
a syndicate of lenders that expires on February 26, 2012.
Borrowings under the senior credit facility and letters
of credit may be used for working capital and other
corporate purposes. PG&E Corporation can, at any time,
repay amounts outstanding in whole or in part. At PG&E
Corporation’s request and at the sole discretion of each
lender, the senior credit facility may be extended for addi-
tional periods. PG&E Corporation has the right to increase,
in one or more requests given no more than once a year,
the aggregate facility by up to $100 million provided cer-
tain conditions are met. The fees and interest rates PG&E
Corporation pays under the senior credit facility vary
depending on the Utility’s unsecured debt ratings issued
by Standard & Poor’s Ratings Service (“S&P”) and Moody’s
Investors Service (“Moody’s”).
The senior credit facility includes usual and customary
covenants for credit facilities of this type, including cov-
enants limiting liens, mergers, sales of all or substantially
all of PG&E Corporation’s assets and other fundamental
changes. In general, the covenants, representations, and
events of default mirror those in the Utility’s working capital
facility, discussed below. In addition, the senior credit facil-
ity also requires that PG&E Corporation maintain a ratio of
total consolidated debt to total consolidated capitalization
of at most 65% and that PG&E Corporation own, directly
or indirectly, at least 80% of the common stock and at least
70% of the voting securities of the Utility.
At December 31, 2007, PG&E Corporation had no out-
standing borrowings or letters of credit under the senior
credit facility.
UTILITY
In the ordinary course of the Utility’s construction activities,
contractors who work on and provide materials to projects
may have certain statutory liens on such projects, which are
released as construction progresses and payments are made
for their work or materials.
Working Capital Facility
On February 26, 2007, the Utility increased its revolving
credit facility (“working capital facility”) with a syndicate
of lenders by $650 million to $2.0 billion and extended the
facility to February 26, 2012. The working capital facility
includes usual and customary covenants for credit facilities
of this type, including covenants limiting liens to those
permitted under the Senior Notes’ indenture, mergers, sales
of all or substantially all of the Utility’s assets and other
fundamental changes. In addition, the working capital
facility also requires that the Utility maintain a debt to
capitalization ratio of at most 65% as of the end of each
fi scal quarter. There were no material changes to the terms,
fees, interest rates, or covenants related to the working
capital facility as a result of the February 2007 amendment.