PG&E 2014 Annual Report Download - page 100

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Borrowings under the revolving credit facilities (other than swingline loans) bear interest based, at PG&E Corporation’s
and the Utility’s election, on (1) a London Interbank Offered Rate plus an applicable margin or (2) the base rate plus an applicable
margin. The base rate will equal the higher of the following: the administrative agent’s announced base rate, 0.5% above the
federal funds rate, or the one-month LIBOR plus an applicable margin. Interest is payable quarterly in arrears, or earlier for loans
with shorter interest periods. PG&E Corporation and the Utility also will pay a facility fee on the total commitments of the lenders
under the revolving credit facilities. The applicable margins and the facility fees will be based on PG&E Corporation’s and the
Utility’s senior unsecured debt ratings issued by Standard & Poor’s Rating Services and Moody’s Investor Service. Facility fees are
payable quarterly in arrears.
PG&E Corporation’s and the Utility’s revolving credit facilities include usual and customary provisions for revolving
credit facilities of this type, including those regarding events of default and covenants limiting liens to those permitted under
their senior note indentures, mergers, sales of all or substantially all of their assets, and other fundamental changes. In addition,
the revolving credit facilities require that PG&E Corporation and the Utility maintain a ratio of total consolidated debt to total
consolidated capitalization of at most 65% as of the end of each fiscal quarter. PG&E Corporation’s revolving credit facility
agreement also requires that PG&E Corporation own, directly or indirectly, at least 80% of the common stock and at least 70% of
the voting capital stock of the Utility.
Commercial Paper Programs
For 2014, the average yield on outstanding PG&E Corporation and Utility commercial paper was 0.24% and 0.23%,
respectively.
The borrowings from PG&E Corporation and the Utility’s commercial paper programs are used primarily to fund
temporary financing needs. Liquidity support for these borrowings is provided by available capacity under their respective
revolving credit facilities, as described above. PG&E Corporation and the Utility treat the amount of its outstanding commercial
paper as a reduction to the amount available under its revolving credit facilities. The commercial paper may have maturities up
to 365 days and ranks equally with PG&E Corporation’s and the Utility’s other unsubordinated and unsecured indebtedness.
Commercial paper notes are sold at an interest rate dictated by the market at the time of issuance.
Other Short-term Borrowings
In May 2014, the Utility issued $300 million principal amount of Floating Rate Senior Notes due May 11, 2015.
Repayment Schedule
PG&E Corporation’s and the Utility’s combined long-term debt principal repayment amounts at December 31, 2014 are
reflected in the table below:
(in millions,
except interest rates) 2015 2016 2017 2018 2019 Thereafter Total
PG&E Corporation
Average xed interest rate - - - - 2.40 % - 2.40 %
Fixed rate obligations $ - $ - $ - $ - $ 350 $ - $ 350
Utility
Average xed interest rate - - 5.63 % 8.25 % - 4.92 % 5.15 %
Fixed rate obligations $ - $ - $ 700 $ 800 $ - $ 12,320 $ 13,820
Variable interest rate
as of December 31, 2014 - 0.01 % - - 0.01 % - 0.01 %
Variable rate obligations (1) $ - $ 160 $ - $ - $ 763 $ - $ 923
Total consolidated debt $ - $ 160 $ 700 $ 800 $ 1,113 $ 12,320 $ 15,093
(1) These bonds, due in 2016 and 2026, are backed by separate letters of credit that expire on December 3, 2016, April 1, 2019, or June 5, 2019.