By Marisa Wong
Madison, Wis., Nov. 22 - South Jersey Gas Co. issued $50 million principal amount of medium-term notes, series 2013D, tranche A, on Thursday, according to an 8-K filing with the Securities and Exchange Commission.
The 17-year notes were issued under a note purchase agreement dated Nov. 21. They have a coupon of 4.01% and will be prepaid as follows:
• $8 million on Nov. 21, 2018;
• $8 million on Nov. 21, 2019;
• $2 million on Nov. 21, 2025;
• $3 million on Nov. 21, 2026;
• $8 million on Nov. 21, 2027;
• $7 million on Nov. 21, 2028; and
• $7 million on Nov. 21, 2029.
The remaining $7 million will be repaid at maturity on Nov. 21, 2030.
The note purchase agreement also provides for the issuance of $30 million of tranche B notes due Jan. 30, 2030. The company expects to issue the tranche B notes on Jan. 30, the filing noted.
There is a make-whole call option at Treasuries plus 50 basis points.
Purchasers include Metlife Alico Life Insurance KK, State Farm Life Insurance Co., State Farm Life and Accident Assurance Co. and Knights of Columbus.
Proceeds will be used to repay short-term debt and for general corporate purposes.
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 2013D, tranche A
|
| Amount: | $50 million
|
| Maturity: | Nov. 21, 2030
|
| Coupon: | 4.01%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Purchasers: | Metlife Alico Life Insurance KK, State Farm Life Insurance Co., State Farm Life and Accident Assurance Co. and Knights of Columbus
|
| Settlement date: | Nov. 21
|
| Distribution: | Private placement
|
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