By Devika Patel
Knoxville, Tenn., Jan. 31 – South Jersey Gas Co. settled a $200 million private placement of 30-year 3% medium-term notes, series E, on Jan. 25, according to an 8-K filed Tuesday with the Securities and Exchange Commission.
Interest on the notes will be payable semiannually.
The notes have a make-whole call.
Beginning Jan. 25, 2025, the company must prepay the notes at par, without any premium or penalty, on any annual call date up until Jan. 25, 2046.
Until Jan. 25, 2032, the company must prepay a minimum of $16 million of bonds per year. After that, the company must prepay at least $8 million of bonds on Jan. 25, 2033 and must prepay at least $7 million of bonds per year from Jan. 25, 2034 through Jan. 25, 2038, inclusive. On Jan. 25, 2038 and Jan. 25, 2039, the company must prepay a minimum of $4 million of bonds per year and from Jan. 25, 2041 through Jan. 25, 2046, inclusive, the company must prepay a minimum of $3 million of bonds per year.
BofA Merrill Lynch, Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and KeyBanc Capital Markets Inc. were the agents.
Proceeds will 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.
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| Issue: | Medium-term notes, series E,
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| Amount: | $200 million
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| Maturity: | Jan. 25, 2047
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| Coupon: | 3%
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| Call option: | Make-whole call; company must prepay the notes at par, without any premium or penalty, on any annual call date between Jan. 25, 2025 and Jan. 25, 2046
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| Settlement date: | Jan. 25
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| Agents: | BofA Merrill Lynch, Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and KeyBanc Capital Markets Inc.
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| Distribution: | Private placement
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