By Lisa Kerner
Charlotte, N.C., Feb. 17 – New Jersey Resources Corp. subsidiary New Jersey Natural Gas Co. entered into a note purchase agreement on Feb. 12 and agreed to sell $50 million of 2.82% series A senior notes due April 15, 2025, and $100 million of 3.66% series B senior notes due April 15, 2045.
Proceeds will be used for general corporate purposes, including to refinance or retire debt and to fund capital expenditure requirements.
New Jersey Natural Gas may prepay at any time all or part of the notes at 100% of the principal amount thereof, together with accrued interest, plus the make-whole amount, if any, of Treasuries plus 50 basis points.
Interest on the notes is payable on April 15 and Oct. 15 of each year beginning on Oct. 15, 2015.
The notes will be secured by an equal principal amount of New Jersey Natural Gas’s first mortgage bonds, according to a form 8-K filed with the Securities and Exchange Commission.
Purchasers include New York Life Insurance Co., Metropolitan Life Insurance Co., Employers Reassurance Corp., Thrivent Financial for Lutherans, John Hancock Life Insurance Co. (USA), Northwestern Life Insurance Co., State Farm Life Insurance Co., American United Life Insurance Co., State Life Insurance Co., Pioneer Mutual Life Insurance Co., United of Omaha Life Insurance Co., Life Insurance Co. of the Southwest, Phoenix Life Insurance Co., PHL Variable Insurance Co. and Woodmen of the World Life Insurance Society.
The notes will not be registered under the Securities Act of 1933 or under the securities laws of any jurisdiction.
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.
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| Issue: | Senior notes
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| Amount: | $150 million
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| Call: | Make-whole at Treasuries plus 50 bps
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| Purchasers: | New York Life Insurance Co., Metropolitan Life Insurance Co., Employers Reassurance Corp., Thrivent Financial for Lutherans, John Hancock Life Insurance Co. (USA), Northwestern Life Insurance Co., State Farm Life Insurance Co., American United Life Insurance Co., State Life Insurance Co., Pioneer Mutual Life Insurance Co., United of Omaha Life Insurance Co., Life Insurance Co. of the Southwest, Phoenix Life Insurance Co., PHL Variable Insurance Co., Woodmen of the World Life Insurance Society
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| Pricing date: | Feb. 12
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| Distribution: | Private placement
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| Series A notes
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| Amount: | $50 million
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| Coupon: | 2.82%
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| Maturity: | April 15, 2025
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|
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| Series B notes
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| Amount: | $100 million
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| Coupon: | 3.66%
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| Maturity: | April 15, 2045
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