June 25, 2002 PUC: 49
Media Contact: Terrie Prosper, PUC Press Office, 415.703.2160, email@example.com
PUC RETAINS UBS WARBURG AS FINANCING AND CAPITAL MARKETS ARRANGER FOR PLAN OF REORGANIZATION FOR PG&E
The California Public Utilities Commission (PUC) today announced that it has retained UBS Warburg, a leading provider of investment banking and capital market services in the global utilities and power sectors, to arrange for the various financings required under the PUC's plan of reorganization for Pacific Gas and Electric Company (PG&E).
UBS Warburg will act as financing and capital markets arranger for the Commission, including assisting the Commission in analyzing, structuring, negotiating, and effecting any financing by PG&E of a reorganization plan, and arranging for any financing in connection with any plan of reorganization by the Commission.
"The PUC's plan of reorganization for PG&E offers an attractive investment opportunity, and we are confident that we can obtain the financing required for the plan," said Kenneth S. Crews, vice chairman of UBS Warburg. "We bring to the table a strong history and expertise in raising financing, and our team is committed to begin work immediately to develop a detailed financial plan as required by the PUC."
The PUC has asked the U.S. Bankruptcy Court to direct PG&E to pay the fees and expenses associated with this retainer so that UBS Warburg can provide the services vital to the implementation of the Commission's plan. PG&E's estate and its creditors are the intended beneficiaries of UBS Warburg's work, and it is appropriate for the company to bear the cost of this work.
"PG&E has been paying millions of dollars for plan-related expenses in an effort to obtain approval for its reorganization plan, and the expense for UBS Warburg is required so that the competing plans remain on a dual track as envisioned by the U.S. Bankruptcy Court," said Gary Cohen, General Counsel for the PUC. "We are confident that UBS will be able to obtain the financing needed for the PUC's plan of reorganization for PG&E."
UBS Warburg is a member of the UBS Group, a global, integrated investment services firm with over 70,000 employees worldwide and approximately 1,500 offices in 50 countries. As one of the preeminent investment banking and financial advisory firms in the world, UBS Warburg is an industry leader in the fields of investment banking, mergers and acquisition, corporate restructuring and debt and equity capital markets.