Deals
PG&E Shareholders Plan a $15 Billion Equity Offering
- Knighthead and Abrams would contribute $1.5 billion in plan
- Funds would be alternative pool of capital for PG&E to tap
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Two hedge funds are seeking to raise $15 billion of equity to bolster PG&E Corp.’s plans to emerge from the largest utility bankruptcy in U.S. history, according to a regulatory filing Thursday.
Knighthead Capital Management and Abrams Capital Management, which together own about 7.8% of the California utility, plan to raise the money through a rights offering that would be open to all existing PG&E shareholders, they said in a filing with the U.S. Securities and Exchange Commission. The plan was reported earlier by Bloomberg News, and shares rose by as much as 2.8% to $18.67.