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PSEG gets more than two-thirds of 8.5% notes in exchange offer to date
By Susanna Moon
Chicago, Aug. 25 - PSEG Power LLC said investors had tendered about $333 million, or 67.3%, of PSEG Energy Holdings, LLC's outstanding 8.5% senior notes due 2011 as of the early participation date, which ended at 5 p.m. ET on Aug. 24.
The exchange offer began Aug. 10 and will expire at midnight ET on Sept. 4.
Holders will receive $1,100 for each $1,000 principal amount of Energy Holdings notes, including $30 in cash for notes tendered by the early participation date.
The payment includes $825.00 principal amount of new 5.32% senior notes due Sept. 15, 2016 and $245.00 in cash.
Before the consideration was increased on Aug. 21, the company was offering $802.50 principal amount of new notes plus $237.50 in cash.
The offer is being made only to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933 and holders other than U.S. persons as defined in Rule 902.
Eligible holders who exchange their notes will be deemed to have consented to the adoption of some amendments to the indenture governing the notes.
The new notes will be fully and unconditionally guaranteed by PSEG Power's three principal operating subsidiaries.
The coupon for the new notes was set at 9 a.m. ET on Aug. 21 and is equal to the sum of the bid-side yield on the 3.25% U.S. Treasury due July 31, 2016 on Aug. 21 plus 225 basis points.
The completion of the offer is subject to the receipt of consents from the holders of a majority of the outstanding notes and the absence of certain adverse legal and market developments.
PSEG Power and PSEG Energy Holdings are subsidiaries of Public Service Enterprise Group Inc., a Newark-based diversified energy company.
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