Published on 5/2/2018 in the Prospect News Investment Grade Daily.
New Issue: PSE&G prices $700 million of 10-, 30-year secured notes in two parts
By Cristal Cody
Tupelo, Miss., May 2 – Public Service Electric & Gas Co. priced a $700 million two-part offering of secured medium-term notes (A2/BBB+/A+) on Wednesday, according to a market source and FWP filings with the Securities and Exchange Commission.
The company sold $375 million of 3.7% 10-year notes 99.62 to yield 77 basis points over Treasuries.
PSE&G priced $325 million of 4.05% 30-year notes at 99.381 and a spread of Treasuries plus 95 bps.
Both tranches priced on the tight side of guidance.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, BNY Mellon Capital Markets LLC, CIBC World Markets Corp. and TD Securities (USA) LLC were the lead managers.
Proceeds from the deal will be used to repay debt from the company’s commercial paper program, which had about $480 million outstanding as of May 1. Remaining proceeds will be used for general corporate purposes.
PSE&G is a Newark, N.J.-based utility.
| Issuer: | Public Service Electric & Gas Co.
|
| Amount: | $700 million
|
| Description: | Series M secured medium-term notes
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, BNY Mellon Capital Markets LLC, CIBC World Markets Corp. and TD Securities (USA) LLC
|
| Co-managers: | Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc., Drexel Hamilton, LLC and MFR Securities, Inc.
|
| Trade date: | May 2
|
| Settlement date: | May 4
|
| Ratings: | Moody’s: A2
|
| S&P: BBB+
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $375 million
|
| Maturity: | May 1, 2028
|
| Coupon: | 3.7%
|
| Price: | 99.62
|
| Spread: | Treasuries plus 77 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Feb. 1, 2028; thereafter at par
|
| Price guidance: | Treasuries plus 80 bps area
|
|
|
| 30-year notes
|
| Amount: | $325 million
|
| Maturity: | May 1, 2048
|
| Coupon: | 4.05%
|
| Price: | 99.381
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps before Nov. 1, 2047; thereafter at par
|
| Price guidance: | Treasuries plus 97 bps area
|
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