PSEG Power Announces Expiration and Results of Exchange Offer
08 September 2009 - 4:26PM
PR Newswire (US)
NEWARK, N.J., Sept. 8 /PRNewswire/ -- PSEG Power LLC ("PSEG
Power"), a wholly-owned subsidiary of Public Service Enterprise
Group Incorporated (NYSE: PEG), announced today the expiration and
results of its offer (the "exchange offer") to eligible holders to
exchange any and all of the outstanding 8.50% Senior Notes due 2011
(the "Energy Holdings notes") of its affiliate, PSEG Energy
Holdings, L.L.C., held by them for newly-issued PSEG Power 5.32%
Senior Notes due 2016 (the "Power notes"), fully and
unconditionally guaranteed by PSEG Power's three principal
operating subsidiaries (the "subsidiary guarantees"), plus a cash
payment plus a cash early participation payment, if eligible. As of
midnight, New York City time, on September 4, 2009 (the "expiration
date"), according to Global Bondholder Services Corporation, the
exchange agent for the exchange offer, the aggregate principal
amount of Energy Holdings notes validly tendered and not validly
withdrawn was $367,837,000, which represents approximately 74.3% of
the outstanding Energy Holdings notes. PSEG Power has accepted all
of the Energy Holdings notes validly tendered and not validly
withdrawn as of the expiration date. The settlement date for the
exchange offer is expected to be on or about September 14, 2009
(the "settlement date"). Holders of the Energy Holdings notes who
validly tendered and did not validly withdraw Energy Holdings notes
at or prior to 5:00 p.m., New York City time, on August 24, 2009
(the "early participation date"), will receive on the settlement
date the "total exchange consideration", which will be, for each
$1,000 principal amount of Energy Holdings notes tendered and
accepted, $1,100.00 of consideration comprised of: -- $825.00
principal amount of Power notes, plus -- a cash payment equal to
$245.00, plus -- a cash "early participation payment" equal to
$30.00 Eligible holders who validly tendered Energy Holdings notes
after the early participation date but at or prior to the
expiration date will receive on the settlement date the total
exchange consideration minus the early participation payment. The
Power notes and the subsidiary guarantees will not be registered
under the Securities Act of 1933 or any state securities laws. The
Power notes and the subsidiary guarantees may not be offered or
sold in the United States or to any U.S. persons except pursuant to
an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act of 1933 and
applicable state securities laws. PSEG Power will enter into a
registration rights agreement with respect to the Power notes. This
press release is neither an offer to purchase nor a solicitation of
an offer to sell the Energy Holdings notes or any other securities.
FORWARD-LOOKING STATEMENT Readers are cautioned that statements
contained in this press release about our and our subsidiaries'
future performance, including future revenues, earnings,
strategies, prospects and all other statements that are not purely
historical, are forward-looking statements for purposes of the safe
harbor provisions under The Private Securities Litigation Reform
Act of 1995. Although we believe that our expectations are based on
reasonable assumptions, we can give no assurance they will be
achieved. The results or events predicted in these statements may
differ materially from actual results or events. Factors which
could cause results or events to differ from current expectations
include, but are not limited to: -- Adverse changes in energy
industry, law, policies and regulation, including market structures
and rules, and reliability standards. -- Any inability of our
energy transmission and distribution businesses to obtain adequate
and timely rate relief and regulatory approvals from federal and
state regulators. -- Changes in federal and/or state environmental
regulations that could increase our costs or limit operations of
our generating units. -- Changes in nuclear regulation and/or
developments in the nuclear power industry generally, that could
limit operations of our nuclear generating units. -- Actions or
activities at one of our nuclear units that might adversely affect
our ability to continue to operate that unit or other units at the
same site. -- Any inability to balance our energy obligations,
available supply and trading risks. -- Any deterioration in our
credit quality. -- Availability of capital and credit at reasonable
pricing terms and our ability to meet cash needs. -- Any inability
to realize anticipated tax benefits or retain tax credits. --
Increases in the cost of or interruption in the supply of fuel and
other commodities necessary to the operation of our generating
units. -- Delays or cost escalations in our construction and
development activities. -- Adverse investment performance of our
decommissioning and defined benefit plan trust funds and changes in
discount rates and funding requirements. -- Changes in technology
and/or increased customer conservation. For further information,
please refer to our Annual Report on Form 10-K, including item 1A.
Risk Factors, and subsequent reports on Form 10-Q and Form 8-K
filed with the Securities and Exchange Commission. These documents
address in further detail our business, industry issues and other
factors that could cause actual results to differ materially from
those indicated in this release. Forward-looking statements made
herein only apply as of this date. While we may elect to update
forward-looking statements from time to time, we specifically
disclaim any obligation to do so, even if our internal estimates
change, unless otherwise required by applicable securities laws.
Public Service Enterprise Group is a publicly traded diversified
energy company with annual revenues of more than $13 billion, and
three principal subsidiaries: PSEG Power, Public Service Electric
and Gas Company (PSE&G) and PSEG Energy Holdings. Want to know
what's new at PSEG? Go to http://www.pseg.com/getnews and sign up
to have our press releases and weekly environmental commentaries
sent right to your inbox. DATASOURCE: PSEG Power LLC CONTACT: Jenn
Kramer, +1-973-430-6027 Web Site: http://www.pseg.com/getnews
Copyright