By Lisa Kerner
Charlotte, N.C., Feb. 10 - New Jersey Resources Corp. subsidiary New Jersey Natural Gas Co. agreed on Friday to privately place senior notes totaling $125 million on March 13, according to an 8-K filing with the Securities and Exchange Commission.
The notes will be issued as
• $70 million of 3.58% series A notes due March 13, 2024; and
• $55 million of 4.61% series B notes due March 13, 2044.
Proceeds will be used for general corporate purposes, including to refinance or retire debt and to fund capital expenditure requirements.
The notes will be secured until the release date by an equal amount of first mortgage bonds, according to the filing.
New Jersey Natural Gas may prepay all or a portion of the notes at any time or from time to time at a make-whole prepayment price.
Under the note purchase agreement, New Jersey Natural Gas' consolidated total debt at the end of any fiscal quarter may not exceed 65% of its consolidated total capitalization, and priority debt is limited to 20% of the consolidated total capitalization.
Based in Wall, N.J., New Jersey Resources provides natural gas services and renewable energy to the New England area.
| Issuer: | New Jersey Natural Gas Co.
|
| Issue: | Senior notes
|
| Amount: | $125 million
|
| Pricing date: | Feb. 7
|
| Settlement date: | March 13
|
| Distribution: | Private placement
|
|
|
| Series A notes
|
| Amount: | $70 million
|
| Coupon: | 3.58%
|
| Maturity: | March 13, 2024
|
|
|
| Series B notes
|
| Amount: | $55 million
|
| Coupon: | 4.61%
|
| Maturity: | March 13, 2044
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
