Rule 424 (b) (2)
Registration No. 333-92003
PRICING SUPPLEMENT dated January 16, 2001
to Prospectus Supplement dated January 21, 2000
and Prospectus dated January 21, 2000
KEYSPAN GAS EAST CORPORATION
Medium-Term Notes, Series A
Due Nine Months or More From the Date of Issue
(Fixed Rate Coupon)
Cusip No.: 49337EAB6
Principal Amount: $125,000,000.00
Net Proceeds: $124,156,250.00
Price to Public: 99.925%, plus accrued interest, if any,
from January 19, 2001
Underwriter's Discount: 0.600%
Purchase Price 99.325%, plus accrued interest, if any,
from January 19, 2001
Interest Rate: 6.900%
Interest Payment Dates: January 15 and July 15, commencing July 15, 2001
Regular Record Date: Close of business on the 15th calendar day
preceding the interest payment date.
Redemption Provisions
The Notes will be redeemable at the option of the KeySpan Gas East
Corporation (the "Issuer"), in whole at any time or in part from time to
time, at a redemption price equal to the greater of (i) 100% of their
principal amount and (ii) the sum, as determined by the Independent
Investment Banker, of the present values of the principal amount and the
remaining scheduled payments of interest on the notes to be redeemed,
discounted from its scheduled payment dates to the redemption date on a
semiannual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Adjusted Treasury Rate, plus accrued but unpaid interest
thereon to the redemption date.
"Adjusted Treasury Rate" means, with respect to any redemption date, the
rate per annum equal to the semiannual equivalent yield to maturity of the
Comparable Treasury Issue, calculated on the third Business Day preceding
such redemption date using 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, plus 25 basis points.
"Comparable Treasury Issue" means the United States Treasury security
selected by the Independent Investment Banker as having a maturity
comparable to the remaining term of the notes to be redeemed 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 the remaining term of such notes to be redeemed.
"Comparable Treasury Price" means, with respect to any redemption date, the
average of the Reference Treasury Dealer Quotations for such redemption
date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury
Dealer Quotations.
"Independent Investment Banker" means one of the Reference Treasury Dealers
appointed by the Trustee after consultation with the Issuer.
"Reference Treasury Dealers" means Merrill Lynch Government Securities
Inc., Chase Securities Inc., and Salomon Smith Barney Inc. or their
affiliates which are primary U.S. Government securities dealers, and their
respective successors and any other primary U.S. Government securities
dealers in New York City (each a "Primary Treasury Dealer") selected by the
Issuer in addition to, or in substitution for, such firms; provided,
however, that if any of the foregoing shall cease to be a Primary Treasury
Dealer, the Issuer will substitute another Primary Treasury Dealer.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any redemption date, 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 5:00 p.m., New York City time, on the third Business Day preceding such
redemption date.
Original Issue Date: January 19, 2001
Stated Maturity Date: January 15, 2008
Specified Currency: U.S. Dollars
Settlement Date: January 19, 2001
Authorized Denomination: $1,000 or any larger whole multiple of $1,000
Underwriter: Chase Securities Inc., acting as principal
