By Lisa Kerner
Charlotte, N.C., Dec. 5 - South Jersey Gas Co. issued $35 million 3.03% medium-term notes, series D, 2012-2, tranche B, due 2024 in a private placement on Nov. 30, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds from the sale of the tranche B notes will be used to repay short-term debt and for general corporate purposes, including funding capital expenditures.
The tranche B notes were issued under a Sept. 20 note purchase agreement between the company and Northwestern Mutual Life Insurance Co., American United Life Insurance Co., Modern Woodmen of America and Mutual of Omaha Insurance Co.
South Jersey Gas issued $50 million of 3% medium-term notes, series D, 2012-2, tranche A, due 2024, on Sept. 20, under the same agreement.
South Jersey Gas must prepay $7 million of the tranche B notes at par on Nov. 30, 2020, Nov. 30, 2021, Nov. 30, 2022 and Nov. 30, 2023, and the entire unpaid principal amount is due and payable on Nov. 30, 2024.
The notes have a make-whole call option at Treasuries plus 50 basis points.
South Jersey Gas, based in Folsom, N.J., is a natural gas service provider and the principal subsidiary of South Jersey Industries.
| Issuer: | South Jersey Gas Co.
|
| Issue: | Medium-term notes, series D, 2012-2, tranche B
|
| Amount: | $50 million
|
| Maturity: | Nov. 30, 2024
|
| Coupon: | 3.03%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Nov. 30
|
| Distribution: | Private placement
|
| Purchasers: | Northwestern Mutual Life Insurance Co., American United Life Insurance Co., Modern Woodmen of America and Mutual of Omaha Insurance Co.
|
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