New Issue-PSE&G sells $400 mln 10-yr 1st mtg bds

April 10 (Reuters) - Public Service Electric and Gas, a
unit of Public Service Enterprise Group (PEG.N: Quote, Profile, Research), on Thursday
sold $400 million of 10-year first mortgage bonds, said market
sources.

BNP Paribas Securities, RBS Greenwich Capital and Scotia
Capital were the joint bookrunning managers for the sale.
BORROWER: PUBLIC SERVICE ELECTRIC AND GAS
AMT $400 MLN COUPON 5.30 PCT MATURITY 5/1/2018
TYPE 1ST MTG BDS ISS PRICE 99.92 FIRST PAY 11/1/2008
MOODY'S A3 YIELD 5.31 PCT SETTLEMENT 4/17/2008
S&P A-MINUS SPREAD 178 BPS PAY FREQ SEMI-ANNUAL
FITCH SINGLE-A MORE THAN TREAS MAKE-WHOLE CALL 30 BPS