Unassociated Document
CALCULATION
OF REGISTRATION FEE
Title of Each Class of Securities Offered |
Maximum Aggregate Offering Price |
Amount of Registration
Fee(1) |
3.150% Secured Medium-Term Notes, Series N, due January 1, 2050 |
$300,000,000 |
$38,940 |
(1) The
filing fee of $38,940 is calculated in accordance with Rule 457(r) under the Securities Act of 1933 and relates to the Registration
Statement on Form S-3 (No. 333-221639) filed by Public Service Electric and Gas Company on November 17, 2017.
Filed Pursuant to Rule 424(b)(5)
Registration Statement No. 333-221639
Pricing
Supplement dated January 7, 2020
(To Prospectus Supplement dated January 7, 2020
and Prospectus dated November
17, 2017)
3.150%
Secured Medium-Term Notes, Series N, due January 1, 2050
PUBLIC
SERVICE ELECTRIC AND GAS COMPANY (PSE&G)
CUSIP:
74456QCC8 Trade Date: January 7, 2020 Original Issue Date/Settlement Date: January 9, 2020 Principal Amount:
$300,000,000 Price to Public: 99.846% of Principal Amount, plus accrued interest from January 9, 2020 if
settlement
occurs after that date Purchase Price: 99.096% of Principal Amount Net Proceeds to Company: $297,288,000 Interest
Rate: 3.150% per annum Initial Interest Accrual Date: January 9, 2020 Interest Payment Dates: January 1 and July
1, commencing July 1, 2020 Regular Record Dates: December 15 and June 15 Maturity Date: January 1, 2050 These
Notes are DTC Eligible and will be issued in book-entry form. |
|
|
|
Mode of Distribution:
[X] Underwritten [ ] Agented
[X] Academy Securities, Inc. ($9,000,000) [ ] Barclays Capital Inc. [X] BNP Paribas Securities Corp. ($57,000,000)
[X] BNY Mellon Capital Markets, LLC ($40,500,000) [ ] BofA Securities, Inc. [X] CastleOak Securities, L.P.
($19,500,000) [ ] CIBC World Markets Corp. [X] Citigroup Global Markets Inc. ($57,000,000) [ ]
Credit Suisse Securities (USA) LLC [ ] Goldman Sachs & Co. LLC [ ] J.P. Morgan Securities
LLC [X] Mizuho Securities USA LLC ($57,000,000) [ ] Morgan Stanley & Co. LLC [ ] MUFG
Securities Americas Inc. [X] PNC Capital Markets LLC ($19,500,000) [ ] RBC Capital Markets, LLC [ ]
Scotia Capital (USA) Inc. [X] TD Securities (USA) LLC ($40,500,000) [ ] U.S. Bancorp Investments, Inc.
[ ] Wells Fargo Securities, LLC |
Redemption Provisions:
The
Secured Medium-Term Notes, Series N offered hereby (the Secured Medium-Term Notes) will be subject
to redemption as described in the prospectus and prospectus supplement.
Additionally,
the Secured Medium-Term Notes will be subject to redemption at any time prior to July 1, 2049 (the date that
is six months prior to the Maturity Date) (the Make Whole Redemption Period) on not less than 30
days prior written notice to holders, either as a whole or in part, at the option of PSE&G, at a
redemption price equal to the greater of (i) 100% of the principal amount of the Secured Medium-Term Notes
to be redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and
interest that would be due if such Secured Medium-Term Notes matured on July 1, 2049 (exclusive of accrued
interest to the redemption date) discounted to the redemption date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points (0.150%), plus, in either
case, accrued interest thereon to the date of redemption.
At
any time on or after July 1, 2049 (the date that is six months prior to the Maturity Date), the Secured Medium-Term
Notes will be subject to redemption on not less than 30 days prior written notice to holders, either
as a whole or in part, at the option of PSE&G, at a redemption price equal to 100% of the principal amount
of the Secured Medium-Term Notes to be redeemed, plus accrued interest thereon to the date of redemption.
Treasury
Rate means, with respect to any redemption date during the Make Whole Redemption Period, the rate per
annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price
for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date.
Comparable
Treasury Issue means the United States Treasury security selected by an Independent Investment Banker
as having a maturity comparable to the remaining term of the Secured Medium-Term Notes to be redeemed (assuming
that the Secured Medium-Term Notes matured on July 1, 2049) that would be utilized, at the time of selection
and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to such remaining term of the Secured Medium-Term Notes to be redeemed.
Comparable
Treasury Price means, with respect to any redemption date during the Make Whole Redemption Period, (i)
the average of three Reference Treasury Dealer Quotations for such redemption date, after excluding the highest
and lowest of five Reference Treasury Dealer Quotations, or (ii) if the Trustee is unable to obtain five Reference
Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations so obtained.
Independent
Investment Banker means one of the Reference Treasury Dealers appointed by PSE&G and acceptable to
the Trustee.
Reference
Treasury Dealer means a primary U.S. Government Securities Dealer in the United States (a Primary
Treasury Dealer) selected by PSE&G and acceptable to the Trustee.
Reference
Treasury Dealer Quotations means, with respect to each Reference Treasury Dealer and any redemption date
during the Make Whole Redemption Period, the average, as determined by the Trustee, of the bid and asked prices
for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted
in writing to the Trustee by such Reference Treasury Dealer at or before 5:00 p.m., New York City time, on
the third business day preceding such redemption date.
Use of Proceeds:
We
expect to use a portion of the net proceeds from the sale of the Secured Medium-Term Notes and the concurrent
offering of $300 million aggregate principal amount of 2.450% Secured Medium-Term Notes, Series N, due January
15, 2030, to repay our indebtedness outstanding under our commercial paper program. As of January 3, 2020,
we had approximately $357 million of indebtedness outstanding under our commercial paper program at an average
interest rate of 1.95% per annum and with an average maturity of 27 days. The commercial paper indebtedness
was incurred for working capital purposes and to fund a dividend from the Company to its parent, Public Service
Enterprise Group Incorporated.
The
remaining net proceeds from this offering and the concurrent offering will be used for general corporate purposes.
No PRIIPs KID:
No
PRIIPs key information document (KID) has been prepared as not available to retail in the EEA.
2