Item 8.01 Other Events PSEG and PSE&G
Following the closing of the sale of our Fossil units in
• As previously disclosed, inOctober 2021 PSEG Power redeemed its remaining outstanding long-term debt. OnMarch 9, 2022 ,PSEG Power entered into a three-year, unsecured$1.25 billion Term Loan Agreement, which has been fully drawn. • Consistent with its past financing practice, PSEG continues to maintain sizeable credit facilities to support its financial and liquidity profile, and PSEG has recently extended its credit facilities. OnMarch 8, 2022 , each of PSEG and its subsidiary,PSEG Power LLC (PSEG Power ), amended, consolidated and restated, four existing unsecured revolving credit agreements, providing for loans and letters of credit, with total unsecured borrowing capacity of$3.4 billion into a single revolving credit agreement (Master Credit Facility). The Master Credit Facility extends the maturity of the existing credit agreements throughMarch 8, 2027 and provides for$2.75 billion of unsecured borrowing capacity, with an initial PSEG sub-limit of$1.5 billion and an initialPSEG Power sub-limit of$1.25 billion . The Master Credit Facility permits adjustments of the initial sub-limits, provided that the PSEG sub-limit, and the aggregate borrowings ofPSEG andPSEG Power under the Master Credit Facility, may not exceed$2.75 billion , and thePSEG Power sub-limit may not exceed$1.75 billion . The PSEG sub-limit includes a sustainability linked pricing mechanism based on achieving targeted reductions of methane emissions. These credit agreement modifications and consolidations follow the close of the sale of the 6,750 megawattPSEG Fossil portfolio and are another step in the simplification of PSEG's business model and balance sheet. • Similarly, onMarch 8, 2022 , PSE&G amended its existing$600 million revolving credit agreement, providing for loans and letters of credit. The amended credit agreement extends the maturity of the existing credit agreement throughMarch 8, 2027 and provides for$1.0 billion of unsecured borrowing capacity. 2
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