Public Service Electric & Gas Co., a publicly traded energy company, is considering entering an interest-rate swap before year-end. Mark Kahrer, assistant treasurer in Newark, N.J., said the corporate is weighing up the possibility of entering a fixed-to-floating rate swap as a means of managing its asset and liability mix. The corporate regularly enters swaps to hedge its interest rate exposure, he added.
Any swap would likely be tied to one of its debt issues and the corporate prefers to enter swaps with a short maturity, said Kahrer. It is too early to determine what size the potential swap would be, or to which debt issue it would be tied, he said. Likely counterparties for the trade would be selected from the lead managers of the company's debt issues and from its relationship banks, he said, declining to specify names.
