Published on 10/2/2023 in the Prospect News Investment Grade Daily.
New Issue: PSEG prices $1 billion of notes in two parts due in five, 10 years
By Wendy Van Sickle
Columbus, Ohio, Oct. 2 – Public Service Enterprise Group Inc. (PSEG) sold $1 billion of notes (Baa2/BBB) in two parts on Monday, according to an FWP filing with the Securities and Exchange Commission.
PSEG sold $600 million of 5.875% five-year senior notes at 99.894 to yield 5.899%, or Treasuries plus 120 basis points.
The issuer also sold $400 million of 6.125% 10-year senior notes at 99.723 to yield 6.162%, or a spread of 150 bps over Treasuries.
The bookrunners were Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC.
Proceeds will be used for general corporate purposes, including to repay at maturity the company’s $750 million outstanding 0.841% senior notes due Nov. 8, 2023.
The energy company is based in Newark, N.J.
| Issuer: | Public Service Enterprise Group Inc.
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | BNP Paribas Securities Corp., BofA Securities, Inc., CastleOak Securities, LP and Siebert Williams Shank & Co. LLC
|
| Trustee: | U.S. Bank Trust Co., NA
|
| Counsel to issuer: | In-house counsel
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $600 million
|
| Maturity: | Oct. 15, 2028
|
| Coupon: | 5.875%
|
| Price: | 99.894
|
| Yield: | 5.899%
|
| Spread: | Treasuries plus 120 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 20 bps before Sept. 15, 2028; par call after that
|
| Cusip: | 744573AW6
|
|
|
| 10-year notes
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| Amount: | $400 million
|
| Maturity: | Oct. 15, 2033
|
| Coupon: | 6.125%
|
| Price: | 99.723
|
| Yield: | 6.162%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 25 bps before July 15, 2033; par call after that
|
| Cusip: | 744573AX4
|
|
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