Company: PCG-PB
Filing Date: 2025-01-21
Form Type: 8-K
Source: 0001193125-25-009579
Chunk: 2

Company: PG&E Corp
Filing Date: 2025-01-21
Form: 8-K
Item: Item 1.01
Chunk 2
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 a first lien on substantially all of the Utility’s real property and certain tangible personal property related to its facilities, subject to certain exceptions, and which will rank

pari passu

with the Utility’s other first mortgage bonds.

Covenants

Under the Loan Guarantee Agreement, the Utility is subject to customary and

non-customary

affirmative and negative covenants. Among

non-customary

covenants, the Utility is subject to Eligible Project-related reporting requirements and specific affirmative covenants, including compliance with (1) the Davis-Bacon Act, (2) the Cargo Preference Act, (3) federal lobbying requirements, (4) sanctions, anti-money laundering and anti-corruption laws and regulations, (5) internal controls requirements, (6) applicable environmental laws (with respect to the Utility and with respect to any Eligible Projects), and (7) all applicable

debt-to-equity

requirements of the California Public Utilities Commission (the “ CPUC”). The Utility also must use commercially reasonable efforts to complete all Eligible Projects for which Eligible Project Costs were funded by advances and must comply with all program requirements of the Title XVII Loan Guarantee Program. Further, the Utility is subject to certain notice requirements, reporting obligations, and negative covenants, including with respect to (a) liens, (b) fundamental changes, (c) modifications to the Mortgage Indenture, (d) a requirement that the Utility maintain a ratio of total consolidated debt to consolidated capitalization of no greater than 65% as of the end of each fiscal quarter, and (e) a requirement that the Utility not purposefully take any action or fail to take any action which would reasonably be expected to cause any Eligible Project to no longer qualify as an Eligible Project under the Loan Guarantee Agreement.

If the Utility modifies any existing debt agreements or enters into any new long-term debt agreements for at least $50 million that contains any financial covenant or negative covenants more favorable to the applicable lenders than the terms of the Loan Guarantee Agreement, the Loan Guarantee Agreement will be automatically amended to give the DOE the benefit of such more favorable covenant.

Events of Default

The Loan Guarantee Agreement contains customary events of default, including the failure to make payments when due, inaccuracy of any representation or warranty when made or deemed made, breach of any covenant contained in the Loan Guarantee Agreement, bankruptcy and insolvency events, cross-default to any other indebtedness of the Utility or any of its significant subsidiaries in excess of $