PG&E 2015 Annual Report Download - page 94

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86
PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
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 respective
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 outstanding common stock and at least 70% of the
outstanding voting capital stock of the Utility.
Commercial Paper Programs
The borrowings from PG&E Corporation and the Utility’s
commercial paper programs are used primarily to fund
temporary financing needs. On July 2, 2015, the Utility
increased the commercial paper program limit from
$1.75 billion to $2.5 billion. PG&E Corporation and the
Utility can issue commercial paper up to the maximum
amounts of $300 million and $2.5 billion, respectively.
PG&E Corporation and the Utility treat the amount of
outstanding commercial paper as a reduction to the
amount available under their respective 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. For 2015, the average yield on outstanding
PG&E Corporation and Utility commercial paper was
0.38% and 0.42%, respectively.
Other Short-term Borrowings
On May 11, 2015, $300 million principal amount of the
Utility’s Floating Rate Senior Notes matured.
Repayment Schedule
PG&E Corporation’s and the Utility’s combined long-term debt principal repayment amounts at December 31, 2015
are reflected in the table below:
(inmillionsexceptinterestrates)
     Thereafter Total
PG&ECorporation
Averagefixedinterestrate - - -  - - 
Fixedrateobligations - - -   - -  
Utility
Averagefixedinterestrate -   -   
Fixedrateobligations -    -   
Variableinterestrate
asofDecember  - -   - 
Variablerateobligations()   - -    -  
Totalconsolidateddebt        
() ThesebondsdueinandarebackedbyseparatelettersofcreditthatexpireonDecemberJune
orDecember
NOTE 5: Common Stock and Share-Based Compensation
PG&E Corporation had 492,025,443 shares of common
stock outstanding at December 31, 2015. PG&E Corporation
held all of the Utility’s outstanding common stock at
December 31, 2015.
In February 2015, PG&E Corporation entered into a new
equity distribution agreement providing for the sale of PG&E
Corporation common stock having an aggregate gross sales
price of up to $500 million. During 2015, PG&E Corporation
sold 1.4 million shares under this agreement for cash proceeds
of $74 million, net of commissions paid of $1 million.
In August 2015, PG&E Corporation sold 6.8 million shares
of its common stock in an underwritten public oering
for cash proceeds of $352 million, net of fees.
In addition, during 2015, PG&E Corporation sold 7.9 million
shares of common stock under its 401(k) plan, the Dividend
Reinvestment and Stock Purchase Plan, and share-based
compensation plans for total cash proceeds of $354 million.
Dividends
The Board of Directors of PG&E Corporation and the
Utility declare dividends quarterly. Under the Utility’s
Articles of Incorporation, the Utility cannot pay common
stock dividends unless all cumulative preferred dividends
on the Utility’s preferred stock have been paid. For 2015,
the Board of Directors of PG&E Corporation declared a
quarterly common stock dividend of $0.455 per share.