Free Writing Prospectus, dated November 4, 2021
Filed pursuant to Rule 433 under the Securities Act of 1933
Supplementing the Preliminary Prospectus, dated October 19, 2021
Registration Statement Nos. 333-256944 and 333-256944-01
PG&E Recovery Funding LLC
(Issuing Entity)
PRICING TERM SHEET
$860,399,000 Senior Secured Recovery Bonds, Series 2021-A
| Issuing Entity: | PG&E Recovery Funding LLC | |
| Sponsor, Depositor and Initial Servicer: | Pacific Gas and Electric Company | |
| Trustee: | The Bank of New York Mellon Trust Company, N.A. | |
| Joint Bookrunners: | Goldman Sachs & Co. LLC | |
| Citigroup Global Markets Inc. | ||
| Co-Managers: | Barclays Capital Inc. | |
| Academy Securities, Inc. | ||
| CastleOak Securities, L.P. | ||
| Siebert Williams Shank & Co., LLC | ||
| Expected Ratings (Moody’s/S&P): | Aaa (sf)/AAA (sf)(1) | |
| Closing Date / Settlement Date: | November 12, 2021(2) | |
| Interest Payment Dates: | January 15 and July 15, commencing July 15, 2022 | |
| Applicable Time: | 4:25 PM (Eastern time) on November 4, 2021 | |
| Proceeds: | The total initial price to the public is $860,370,896. The total amount of the underwriting discounts and commissions is $3,441,596. The total amount of proceeds to the Issuing Entity before deduction of expenses (estimated to be $6,881,300) is $856,929,300. | |
| (1) | A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
| (2) | The Issuing Entity expects to deliver the bonds against payment for the bonds on or about November 12, 2021, which will be the fifth business day following the date of pricing of the bonds. Since trades in the secondary market generally settle in two business days, purchasers who wish to trade bonds on the date of pricing or the succeeding two business days will be required, by virtue of the fact that the bonds initially will settle in T+5, to specify alternative settlement arrangements to prevent a failed settlement. |
| Tranche |
Principal Amount Offered |
Expected Weighted Average Life (years) |
Scheduled Final Payment Date |
Final Maturity Date |
Interest Rate |
Initial Price to Public(3) |
Underwriting Discounts and Commissions |
Proceeds to Issuing Entity (Before Expenses) |
||||||||||||||||||||||||
| A-1 |
$ | 266,127,000 | 4.99 | 7/15/2031 | 7/15/2033 | 1.460 | % | 99.99876 | % | 0.400 | % | 265,059,192 | ||||||||||||||||||||
| A-2 |
$ | 160,309,000 | 11.99 | 1/15/2036 | 1/15/2038 | 2.280 | % | 99.99698 | % | 0.400 | % | 159,662,923 | ||||||||||||||||||||
| A-3 |
$ | 433,963,000 | 19.93 | 7/15/2046 | 7/15/2048 | 2.822 | % | 99.99540 | % | 0.400 | % | 432,207,186 | ||||||||||||||||||||
| (3) | Interest on the bonds will accrue from November 12, 2021 and must be paid by the purchaser if the bonds are delivered after that date. |
| Tranche A-1 | Tranche A-2 | Tranche A-3 | ||||||||||
| CUSIP |
71710TAA6 | 71710TAB4 | 71710TAC2 | |||||||||
| ISIN |
US71710TAA60 | US71710TAB44 | US71710TAC27 | |||||||||
EXPECTED SINKING FUND SCHEDULE
| Semi-Annual Payment Date |
Tranche A-1 Principal |
Tranche A-2 Principal |
Tranche A-3 Principal |
|||||||||
| 7/15/2022 | $ | 18,365,684 | $ | — | $ | — | ||||||
| 1/15/2023 | $ | 13,530,458 | $ | — | $ | — | ||||||
| 7/15/2023 | $ | 13,638,431 | $ | — | $ | — | ||||||
| 1/15/2024 | $ | 13,747,265 | $ | — | $ | — | ||||||
| 7/15/2024 | $ | 13,856,969 | $ | — | $ | — | ||||||
| 1/15/2025 | $ | 13,967,547 | $ | — | $ | — | ||||||
| 7/15/2025 | $ | 14,079,008 | $ | — | $ | — | ||||||
| 1/15/2026 | $ | 14,191,359 | $ | — | $ | — | ||||||
| 7/15/2026 | $ | 14,304,606 | $ | — | $ | — | ||||||
| 1/15/2027 | $ | 14,418,757 | $ | — | $ | — | ||||||
| 7/15/2027 | $ | 14,533,818 | $ | — | $ | — | ||||||
| 1/15/2028 | $ | 14,649,798 | $ | — | $ | — | ||||||
| 7/15/2028 | $ | 14,766,704 | $ | — | $ | — | ||||||
| 1/15/2029 | $ | 14,884,542 | $ | — | $ | — | ||||||
| 7/15/2029 | $ | 15,003,320 | $ | — | $ | — | ||||||
| 1/15/2030 | $ | 15,123,047 | $ | — | $ | — | ||||||
| 7/15/2030 | $ | 15,243,729 | $ | — | $ | — | ||||||
| 1/15/2031 | $ | 15,365,374 | $ | — | $ | — | ||||||
| 7/15/2031 | $ | 2,456,584 | $ | 13,031,406 | $ | — | ||||||
| 1/15/2032 | $ | — | $ | 15,678,370 | $ | — | ||||||
| 7/15/2032 | $ | — | $ | 15,883,835 | $ | — | ||||||
| 1/15/2033 | $ | — | $ | 16,091,992 | $ | — | ||||||
| 7/15/2033 | $ | — | $ | 16,302,878 | $ | — | ||||||
| 1/15/2034 | $ | — | $ | 16,516,527 | $ | — | ||||||
| 7/15/2034 | $ | — | $ | 16,732,976 | $ | — | ||||||
| 1/15/2035 | $ | — | $ | 16,952,262 | $ | — | ||||||
| 7/15/2035 | $ | — | $ | 17,174,421 | $ | — | ||||||
| 1/15/2036 | $ | — | $ | 15,944,334 | $ | 1,455,158 | ||||||
| 7/15/2036 | $ | — | $ | — | $ | 17,630,619 | ||||||
| 1/15/2037 | $ | — | $ | — | $ | 17,899,310 | ||||||
| 7/15/2037 | $ | — | $ | — | $ | 18,172,095 | ||||||
| 1/15/2038 | $ | — | $ | — | $ | 18,449,038 | ||||||
| 7/15/2038 | $ | — | $ | — | $ | 18,730,201 | ||||||
| 1/15/2039 | $ | — | $ | — | $ | 19,015,650 | ||||||
| 7/15/2039 | $ | — | $ | — | $ | 19,305,448 | ||||||
| 1/15/2040 | $ | — | $ | — | $ | 19,599,663 | ||||||
| 7/15/2040 | $ | — | $ | — | $ | 19,898,362 | ||||||
| 1/15/2041 | $ | — | $ | — | $ | 20,201,613 | ||||||
| 7/15/2041 | $ | — | $ | — | $ | 20,509,486 | ||||||
| 1/15/2042 | $ | — | $ | — | $ | 20,822,050 | ||||||
| 7/15/2042 | $ | — | $ | — | $ | 21,139,378 | ||||||
| 1/15/2043 | $ | — | $ | — | $ | 21,461,542 | ||||||
| 7/15/2043 | $ | — | $ | — | $ | 21,788,616 | ||||||
| 1/15/2044 | $ | — | $ | — | $ | 22,120,675 | ||||||
| 7/15/2044 | $ | — | $ | — | $ | 22,457,794 | ||||||
| 1/15/2045 | $ | — | $ | — | $ | 22,800,051 | ||||||
| 7/15/2045 | $ | — | $ | — | $ | 23,147,523 | ||||||
| 1/15/2046 | $ | — | $ | — | $ | 23,500,292 | ||||||
| 7/15/2046 | $ | — | $ | — | $ | 23,858,436 | ||||||
| Total Payments(4) | $ | 266,127,000 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| (4) | Totals may not add up due to rounding. |
EXPECTED OUTSTANDING PRINCIPAL BALANCE PER TRANCHE
| Semi-Annual Payment Date |
Tranche A-1 Balance |
Tranche A-2 Balance |
Tranche A-3 Balance |
|||||||||
| Closing Date |
$ | 266,127,000 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2022 |
$ | 247,761,316 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2023 |
$ | 234,230,858 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2023 |
$ | 220,592,427 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2024 |
$ | 206,845,161 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2024 |
$ | 192,988,193 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2025 |
$ | 179,020,645 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2025 |
$ | 164,941,637 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2026 |
$ | 150,750,278 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2026 |
$ | 136,445,673 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2027 |
$ | 122,026,916 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2027 |
$ | 107,493,098 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2028 |
$ | 92,843,300 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2028 |
$ | 78,076,596 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2029 |
$ | 63,192,054 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2029 |
$ | 48,188,734 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2030 |
$ | 33,065,687 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2030 |
$ | 17,821,958 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 1/15/2031 |
$ | 2,456,584 | $ | 160,309,000 | $ | 433,963,000 | ||||||
| 7/15/2031 |
$ | — | $ | 147,277,594 | $ | 433,963,000 | ||||||
| 1/15/2032 |
$ | — | $ | 131,599,225 | $ | 433,963,000 | ||||||
| 7/15/2032 |
$ | — | $ | 115,715,390 | $ | 433,963,000 | ||||||
| 1/15/2033 |
$ | — | $ | 99,623,398 | $ | 433,963,000 | ||||||
| 7/15/2033 |
$ | — | $ | 83,320,520 | $ | 433,963,000 | ||||||
| 1/15/2034 |
$ | — | $ | 66,803,993 | $ | 433,963,000 | ||||||
| 7/15/2034 |
$ | — | $ | 50,071,017 | $ | 433,963,000 | ||||||
| 1/15/2035 |
$ | — | $ | 33,118,755 | $ | 433,963,000 | ||||||
| 7/15/2035 |
$ | — | $ | 15,944,334 | $ | 433,963,000 | ||||||
| 1/15/2036 |
$ | — | $ | — | $ | 432,507,842 | ||||||
| 7/15/2036 |
$ | — | $ | — | $ | 414,877,222 | ||||||
| 1/15/2037 |
$ | — | $ | — | $ | 396,977,913 | ||||||
| 7/15/2037 |
$ | — | $ | — | $ | 378,805,817 | ||||||
| 1/15/2038 |
$ | — | $ | — | $ | 360,356,779 | ||||||
| 7/15/2038 |
$ | — | $ | — | $ | 341,626,578 | ||||||
| 1/15/2039 |
$ | — | $ | — | $ | 322,610,929 | ||||||
| 7/15/2039 |
$ | — | $ | — | $ | 303,305,481 | ||||||
| 1/15/2040 |
$ | — | $ | — | $ | 283,705,817 | ||||||
| 7/15/2040 |
$ | — | $ | — | $ | 263,807,455 | ||||||
| 1/15/2041 |
$ | — | $ | — | $ | 243,605,842 | ||||||
| 7/15/2041 |
$ | — | $ | — | $ | 223,096,357 | ||||||
| 1/15/2042 |
$ | — | $ | — | $ | 202,274,307 | ||||||
| 7/15/2042 |
$ | — | $ | — | $ | 181,134,928 | ||||||
| 1/15/2043 |
$ | — | $ | — | $ | 159,673,386 | ||||||
| 7/15/2043 |
$ | — | $ | — | $ | 137,884,770 | ||||||
| 1/15/2044 |
$ | — | $ | — | $ | 115,764,095 | ||||||
| 7/15/2044 |
$ | — | $ | — | $ | 93,306,301 | ||||||
| 1/15/2045 |
$ | — | $ | — | $ | 70,506,251 | ||||||
| 7/15/2045 |
$ | — | $ | — | $ | 47,358,727 | ||||||
| 1/15/2046 |
$ | — | $ | — | $ | 23,858,436 | ||||||
| 7/15/2046 |
$ | — | $ | — | $ | — | ||||||
Subject to the terms and conditions in the underwriting agreement among us, PG&E and the underwriters, for whom Goldman Sachs & Co. LLC and Citigroup Global Markets Inc. are acting as representative, we have agreed to sell to the underwriters, and the underwriters have severally agreed to purchase, the principal amount of the bonds listed opposite each underwriter’s name below:
| Underwriter |
Tranche A-1 | Tranche A-2 | Tranche A-3 | |||||||||
| Goldman Sachs & Co. LLC |
$ | 119,758,000 | $ | 72,140,000 | $ | 195,284,000 | ||||||
| Citigroup Global Markets Inc. |
$ | 93,145,000 | $ | 56,109,000 | $ | 151,887,000 | ||||||
| Barclays Capital Inc. |
$ | 13,306,000 | $ | 8,015,000 | $ | 21,698,000 | ||||||
| Academy Securities, Inc. |
$ | 13,306,000 | $ | 8,015,000 | $ | 21,698,000 | ||||||
| CastleOak Securities, L.P. |
$ | 13,306,000 | $ | 8,015,000 | $ | 21,698,000 | ||||||
| Siebert Williams Shank & Co., LLC |
$ | 13,306,000 | $ | 8,015,000 | $ | 21,698,000 | ||||||
| Total |
$ | 266,127,000 | $ | 160,309,000 | $ | 433,963,000 | ||||||
The underwriters may allow, and dealers may reallow, a discount not to exceed the percentage listed below for each tranche:
| Selling Concession | Reallowance Discount | |||||||
| Tranche A-1 |
0.240 | % | 0.120 | % | ||||
| Tranche A-2 |
0.240 | % | 0.120 | % | ||||
| Tranche A-3 |
0.240 | % | 0.120 | % | ||||
After the initial public offering, the public offering prices, selling concessions and reallowance discounts may change.
Pacific Gas and Electric Company and the Issuing Entity have filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents Pacific Gas and Electric Company and the Issuing Entity have filed with the SEC as exhibits to the registration statement for more complete information about the Issuing Entity and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Pacific Gas and Electric Company, the Issuing Entity, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Goldman Sachs & Co. LLC toll-free at 1-866-471-2526 or Citigroup Global Markets Inc. toll-free at 1-800-831-9146.