PSEG Announces Redemption of All Outstanding PSEG Power Senior Notes

Rhea-AI Summary

PSEG (NYSE: PEG) announced plans to redeem all outstanding Senior Notes of PSEG Power, totaling approximately $1.35 billion. This includes $700 million of 3.850% Senior Notes due 2023, $250 million of 4.30% Senior Notes due 2023, and $404.3 million of 8.625% Senior Notes due 2031, effective October 8, 2021. A 'make-whole' premium for the redemption is estimated between $280 million to $340 million. After this redemption, PSEG Power will have no bonds outstanding, simplifying its debt structure.

Positive

• Redemption of all outstanding Senior Notes enhances balance sheet by reducing debt.
• Post-redemption, PSEG Power will not have any bonds outstanding.

Negative

• The estimated 'make-whole' premium could strain cash reserves, ranging from $280 million to $340 million.

NEWARK, N.J., Sept. 8, 2021 /PRNewswire/ -- PSEG (NYSE: PEG) announced today that it will redeem all remaining outstanding Senior Notes of PSEG Power totaling approximately $1.35 billion. This includes $700 million in aggregate principal amount of 3.850% Senior Notes due 2023, $250 million in aggregate principal amount of 4.30% Senior Notes due 2023, and approximately $404.3 million in aggregate principal amount of 8.625% Senior Notes due 2031 on Oct. 8, 2021 (collectively, the "Notes"). Following redemption of the Notes, PSEG Power will no longer have any bonds outstanding.

The Notes will be redeemed at a redemption price that includes a "make-whole" premium estimated to be approximately $280 million to $340 million plus any interest accrued and unpaid to the redemption date, in each case, calculated in accordance with the indenture governing the Notes. Additional information concerning the terms of the redemption are fully described in the Redemption Notice distributed to the holders of the Notes by the Notes' trustee, the Bank of New York Mellon Corp.

About PSEG
Public Service Enterprise Group Inc. (PSEG) (NYSE: PEG) is a publicly traded diversified energy company with approximately 13,000 employees. Headquartered in Newark, N.J., PSEG's principal operating subsidiaries are: Public Service Electric and Gas Co. (PSE&G), PSEG Power and PSEG Long Island. PSEG is a Fortune 500 company included in the S&P 500 Index and has been named to the Dow Jones Sustainability Index for North America for 13 consecutive years (https://corporate.pseg.com).

Forward-Looking Statement
The statements contained in this press release that are not purely historical are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are not limited to, the occurrence of any event, change, development, occurrence or circumstance that could give rise to the termination of the agreement described above or the inability to complete (or a delay in the completion of) the proposed sale due to, among other things, the failure to satisfy the conditions to the closing therein, including that a regulatory authority or other third party may prohibit, delay, impair or refuse to grant approval for or consent to the consummation of the proposed transaction. Such statements are based on management's beliefs as well as assumptions made by and information currently available to management. Factors that may cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are discussed in our Annual Report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K filed with the Securities and Exchange Commission (SEC), and available on our website: https://investor.pseg.com. All of the forward-looking statements made in this press release are qualified by these cautionary statements and we cannot assure you that the results or developments anticipated by management will be realized or even if realized, will have the expected consequences to, or effects on, us or our business, prospects, financial condition, results of operations or cash flows. Readers are cautioned not to place undue reliance on these forward-looking statements in making any investment decision. Forward-looking statements made in this press release apply only as of the date hereof. While we may elect to update forward-looking statements from time to time, we specifically disclaim any obligation to do so, even in light of new information or future events, unless otherwise required by applicable securities laws. 

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From time to time, PSEG, PSE&G and PSEG Power release important information via postings on their corporate Investor Relations website at https://investor.pseg.com. Investors and other interested parties are encouraged to visit the Investor Relations website to review new postings. You can sign up for automatic email alerts regarding new postings at the bottom of the webpage at https://investor.pseg.com.

CONTACTS:
Investor Relations	Media Relations
Carlotta Chan	Marijke Shugrue
973-430-6565	908-531-4253
Carlotta.Chan@pseg.com	Marijke.Shugrue@pseg.com

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SOURCE PSEG

FAQ

What is PSEG's plan for its Senior Notes?

PSEG plans to redeem all remaining outstanding Senior Notes totaling approximately $1.35 billion.

When will PSEG redeem its Senior Notes?

PSEG will redeem the Senior Notes on October 8, 2021.

What is the estimated redemption premium for PSEG's Senior Notes?

The estimated 'make-whole' premium for the redemption is between $280 million and $340 million.

How much debt will PSEG have after redeeming the Senior Notes?

After the redemption, PSEG Power will have no bonds outstanding.