South Jersey, subsidiaries amend revolver, extend it by one year

By Sarah Lizee

Olympia, Wash., May 4 – South Jersey Industries, Inc. and subsidiaries Elizabethtown Gas Co., SJI Utilities, Inc. and Elkton Gas Co. amended their $200 million two-year revolving credit agreement with JPMorgan Chase Bank, NA as administrative agent on April 29 to extend the termination date to April 29, 2022 from June 7, 2021, according to an 8-K filing with the Securities and Exchange Commission.

South Jersey Industries is in the process of selling Elkton and, in anticipation of the transaction, Elkton was removed as a borrower under the credit agreement.

South Jersey Industries had entered into the credit agreement for the purpose of acting as a guarantor to Elkton’s obligations under the credit agreement. As a result of Elkton’s being removed as a borrower, South Jersey Industries was also removed as a guarantor.

Other terms of the credit agreement are unchanged.

Proceeds may be used for general corporate purposes.

The credit agreement provides for swingline loans in an amount not to exceed an aggregate of $20 million and letters of credit in an amount not to exceed an aggregate of $50 million.

Subject to some conditions, borrowers may increase the revolver up to a maximum aggregate amount of $50 million for a total facility of up to $250 million.

Borrowings bear interest at Libor plus 95 basis points to 162.5 bps, based on debt ratings.

There is a financial covenant limiting the ratio of debt of each borrower and its subsidiaries on a consolidated basis to consolidated total capitalization of not more than 0.7 to 1.0.

Folsom, N.J.-based South Jersey is a publicly held energy services holding company for a natural gas utility and other non-regulated companies.

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