PG&E Pleads Guilty to Deaths of 84 People in 2018 Fire

PG&E pleaded guilty to involuntary manslaughter in the deaths of 84 people in a 2018 fire caused by its equipment.
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California utility Pacific Gas & Electric  (PCG) - Get Report pleaded guilty to involuntary manslaughter in the deaths of 84 people in the raging 2018 fire that destroyed the town of Paradise in Northern California.

The company, represented by Chief Executive Bill Johnson, admitted to 84 felony counts of involuntary manslaughter resulting from the fire, the Associated Press reports. PG&E’s dilapidated electrical grid apparently sparked the blaze.

“Our equipment started that fire,” Johnson said in apologizing to the victims’ families, the AP reports. ”PG&E will never forget the Camp Fire and all that it took away from the region.”

Earlier Tuesday, Bloomberg reported that the company would issue as much as $6 billion of investment-grade bonds.

The bonds would make up the biggest portion of an $11 billion financing package to help the company emerge from bankruptcy proceedings.

The first-mortgage bonds will be offered in up to six tranches, a knowledgeable source told Bloomberg. The biggest chunk of issuance will be 30-year bonds, which may yield 2.625 percentage points above treasury securities, the source said.

On Monday, PG&E began marketing high-yield bonds and a term loan, which total $4.75 billion, Bloomberg reports.

PG&E said last week that it would sell shares at a discount to a group of high-powered investment firms.

PG&E agreed to sell $3.25 billion of common stock at $10.50 a share to Fidelity, Appaloosa, Third Point and Zimmer Partners.

PG&E shares recently traded at $10.94, down 0.4%. The stock has plunged 73% over the past two years, but has rebounded 7% in the past three months.