South Jersey Gas reports plans to place $200 million 3% 30-year notes

By Devika Patel

Knoxville, Tenn., Jan. 31 – Tuesday saw one private placement announced: Folsom, N.J., natural gas service provider South Jersey Gas Co. settled a $200 million private placement of 3% 30-year medium-term notes, series E, on Jan. 25.

South Jersey Gas offering

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 be used to repay short-term debt and for general corporate purposes.

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