By Cristal Cody
Tupelo, Miss., Aug. 12 – Public Service Enterprise Group Inc. sold $1.1 billion of senior notes (Baa1/BBB) in two parts on Wednesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The group sold $550 million of 0.8% five-year notes at 99.775 to yield 0.846%, or a spread of Treasuries plus 55 basis points.
The notes were talked to price at the Treasuries plus 80 bps area.
A $550 million offering of 1.6% 10-year notes priced at 99.816 to yield 1.62%, or a 95 bps over Treasuries spread.
Initial price talk was at the 120 bps spread area.
Barclays, Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including prepayment in full of $200 million principal amount of term loans outstanding under an April 6 term loan agreement and $300 million of a principal amount of term loans outstanding under an April 10 term loan agreement.
As of July 31, the interest rate on the April 6 term loan was 1.67% and the interest rate on the April 10 term loan was 1.92%.
Public Service Enterprise Group is a Newark holding company for public electric utility subsidiaries that include Public Service Electric and Gas Co. and PSEG Power LLC.
| Issuer: | Public Service Enterprise Group Inc.
|
| Amount: | $1.1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, TD Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC
|
| Co-managers: | CIBC World Markets Corp., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and U.S. Bancorp Investments Inc.
|
| Trade date: | Aug. 12
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $550 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 0.8%
|
| Price: | 99.775
|
| Yield: | 0.846%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps before July 15, 2025; thereafter at par
|
| Price guidance: | Treasuries plus 80 bps area
|
|
|
| 10-year notes
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| Amount: | $550 million
|
| Maturity: | Aug. 15, 2030
|
| Coupon: | 1.6%
|
| Price: | 99.816
|
| Yield: | 1.62%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before May 15, 2030; thereafter at par
|
| Price guidance: | Treasuries plus 120 bps area
|
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