Company: PCG-PB
Filing Date: 2025-01-21
Form Type: 8-K
Source: 0001193125-25-009579
Chunk: 3

Company: PG&E Corp
Filing Date: 2025-01-21
Form: 8-K
Item: Item 1.01
Chunk 3
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200 million (subject to annual adjustment), certain judgment defaults against the Utility or any of its significant subsidiaries in excess of $200 million (subject to annual adjustment), a change of control, certain events with respect to the Employee Retirement Income Security Act of 1974, as amended, and failure to maintain the lien of the Mortgage Indenture. The Loan Guarantee Agreement also contains an event of default regarding the use of other federal funding to pay any project costs or repay the Guaranteed Loan.

The Loan Guarantee Agreement contains usual and customary notice and grace periods and remedies with respect to the occurrence of an event of default. If an event of default occurs, the DOE has certain rights and may, among other options and in its discretion, assess fees and penalties, enforce the collateral, and declare all amounts due under the Guaranteed Loan payable immediately in full.

Mandatory and Optional Prepayments

The Loan Guarantee Agreement contemplates several scenarios in which the Utility is either required to prepay certain amounts outstanding under the Guaranteed Loan (a “mandatory prepayment”) or may optionally prepay all or a portion of the amounts outstanding under the Guaranteed Loan (an “optional prepayment”). The timing and amount to be prepaid varies based on the triggering event for such prepayment. Under the FFB Note Documents, any optional prepayment will be made with a make-whole premium or discount, as applicable, and any mandatory prepayment will be made at par. For purposes of any optional prepayment occurring after a Guarantee Trigger Event, the calculation of the prepayment price disregards the increased interest rate as a result of the Guarantee Trigger Event.

Mandatory Prepayment

If, on the date that is one year after the end of the Availability Period (the “ Test Date”), more than 5% of the Eligible Projects for which advances have been made have been abandoned or terminated, the Utility must prepay within one year an amount equal to the advance(s) which funded such abandoned or terminated Eligible Project(s). If, on the Test Date, the amount of Eligible Project Costs which are, as of the Test Date, eligible for cost recovery in final approvals from the Federal Energy Regulatory Commission (the “ FERC”) or the CPUC for all Eligible Projects upon which advances have been made is less than 95% of the total advances made under the Guaranteed Loan, the Utility will be required to prepay within one year an amount equal to the difference in the total amount of all advances under the Guaranteed Loan less the amount of Eligible Project Costs which are, as of