PG&E 2010 Annual Report Download - page 79

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NOTE 4: DEBT
LONG-TERM DEBT
The following table summarizes PG&E Corporation’s and
the Utility’s long-term debt:
December 31,
(in millions) 2010 2009
PG&E Corporation
Convertible subordinated notes, 9.50%,
due 2010 $—$ 247
Less: current portion —(247)
Total convertible subordinated notes — —
Senior notes, 5.75%, due 2014 350 350
Unamortized discount (1) (2)
Total senior notes 349 348
Total PG&E Corporation long-term
debt, net of current portion 349 348
Utility
Senior notes:
4.20% due 2011 500 500
6.25% due 2013 400 400
4.80% due 2014 1,000 1,000
5.625% due 2017 700 700
8.25% due 2018 800 800
3.50% due 2020 800 —
6.05% due 2034 3,000 3,000
5.80% due 2037 950 700
6.35% due 2038 400 400
6.25% due 2039 550 550
5.40% due 2040 800 550
Less: current portion (500) —
Unamortized discount, net of
premium (52) (35)
Total senior notes 9,348 8,565
Pollution control bonds:
Series 1996 C, E, F, 1997 B, variable
rates (1), due 2026 (2) 614 614
Series 1996 A, 5.35%, due 2016 (3) 200 200
Series 2004 A–D, 4.75%, due 2023 (3) 345 345
Series 2008 G and F, 3.75% (4), due
2018 and 2026 —95
Series 2009 A–D, variable rates (5), due
2016 and 2026 (6) 309 309
Series 2010 E, 2.25%, due 2026 (7) 50 —
Less: current portion (309) (95)
Total pollution control bonds 1,209 1,468
Total Utility long-term debt, net of
current portion 10,557 10,033
Total consolidated long-term debt, net of
current portion $ 10,906 $ 10,381
(1) At December 31, 2010, interest rates on these bonds and the related
loans ranged from 0.26% to 0.31%.
(2) Each series of these bonds is supported by a separate direct-pay letter
of credit that expires on February 26, 2012. Although the stated
maturity date is 2026, each series will remain outstanding only if the
Utility extends or replaces the letter of credit related to the series or
otherwise obtains a consent from the issuer to the continuation of the
series without a credit facility.
(3) The Utility has obtained credit support from insurance companies for
these bonds.
(4) These bonds bore interest at 3.75% per year through September 19,
2010, and were subject to mandatory tender on September 20, 2010.
The Utility repurchased these bonds on September 20, 2010.
(5) At December 31, 2010, interest rates on these bonds and the related
loans ranged from 0.22% to 0.29%.
(6) Each series of these bonds is supported by a separate direct-pay letter
of credit that expires on October 29, 2011. The Utility may choose to
provide a substitute letter of credit for any series of these bonds,
subject to a rating requirement.
(7) These bonds bear interest at 2.25% per year through April 1, 2012; are
subject to mandatory tender on April 2, 2012; and may be remarketed
in a fixed or variable rate mode.
PG&E CORPORATION
Convertible Subordinated Notes
PG&E Corporation issued 16,370,779 shares of common
stock upon conversion of the $247 million principal
amount of PG&E Corporation’s 9.5% Convertible
Subordinated Notes at a conversion price of $15.09 per
share between June 23 and June 29, 2010. These notes were
no longer outstanding as of December 31, 2010.
UTILITY
SeniorNotes
On April 1, 2010, the Utility issued $250 million principal
amount of 5.8% Senior Notes due March 1, 2037.
On September 15, 2010, the Utility issued $550 million
principal amount of 3.5% Senior Notes due October 1,
2020.
On November 18, 2010, the Utility issued $250 million
principal amount of 3.5% Senior Notes due October 1,
2020 and $250 million of 5.4% Senior Notes due
January 15, 2040.
PollutionControl Bonds
The California Pollution Control Financing Authority and
the California Infrastructure and Economic Development
Bank have issued various series of fixed rate and multi-
modal tax-exempt pollution control bonds for the benefit
of the Utility. Under the pollution control bond loan
agreements related to the Series 1996 A bonds, the Series
2004 A–D bonds, and the Series 2010 E bonds, the Utility
is obligated to pay on the due dates an amount equal to the
principal; premium, if any; and interest on these bonds to
the trustees for these bonds. With respect to the Series
1996 C, E, and F bonds; the Series 1997 B bonds; and the
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