PSEG Power gets early tenders on 8.625% notes

By Taylor Fox

New York, Dec. 8 – Public Service Enterprise Group Inc. announced the early tender results of its private exchange offer on PSEG Power LLC’s 8.625% senior notes due 2031 (Cusip: 69362BAJ1), according to a news release.

As of the 5 p.m. ET on Dec. 7 early tender deadline, $95,264,000, or 19.05%, of the notes were validly tendered and not withdrawn.

As previously reported, PSEG is offering to issue new notes in exchange for any and all of the $500 million outstanding Power notes.

PSEG also increased the exchange consideration for Power notes validly tendered after the early tender deadline to $1,000 principal amount of the PSEG notes per $1,000 principal amount of Power notes from $970 principal amount of the PSEG notes per $1,000 principal amount of Power notes. PSEG also withdrew the consent solicitation.

As a result, notes tendered prior to the early tender deadline and following the early tender deadline will receive the same consideration.

Each eligible noteholder exchanging Power notes in the exchange offer will receive newly issued PSEG notes having the same interest payment and maturity dates and interest rate as the Power notes exchanged.

No accrued interest will be paid on the settlement date in respect of Power notes accepted for exchange.

The PSEG notes will be issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.

If the principal amount of PSEG notes validly tendered that would otherwise be required to be delivered in exchange for a tender of Power notes would not equal $2,000 or an integral multiple of $1,000 in excess thereof, it will be rounded down to $2,000 or the nearest integral multiple of $1,000 in excess thereof and PSEG will pay cash equal to the remaining portion of the exchange consideration for such Power notes, plus interest.

No tender of Power notes will be accepted if it would result in the issuance of less than $2,000 principal amount of PSEG notes.

The withdrawal deadline was 5 p.m. ET on Dec. 7.

The offer will expire at 11:59 p.m. ET on Dec. 21.

Settlement is expected to occur Dec. 23.

Global Bondholder Services Corp. (800 470-3800, 212 430-3774) is the information agent.

The energy supply company is based in Newark.

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