By Abigail W. Adams
Portland, Me., March 18 – South Jersey Industries Inc. priced $300 million, or 6 million three-year $50-par equity units, after the market close on Wednesday at par with a yield of 8.75% and a threshold appreciation premium of 17.5%, according to an FWP filing with the Securities and Exchange Commission.
Pricing came at the cheap end of talk for a yield of 8.25% to 8.75% and a threshold appreciation premium of 17.5% to 22.5%, according to a market source.
BofA Securities Inc. was the bookrunner for the registered offering, which carries a greenshoe of $45 million, or 900,000 units. Joint lead managers were Guggenheim Securities, LLC and J.P. Morgan Securities LLC.
The equity units will consist of a common stock purchase contract and a 1/20 stake in the company’s par-of-$1,000 series B remarketable junior subordinated notes due 2029.
Concurrently, the company priced a secondary offering of 362,359 common shares at a public offering price of $22.25.
The secondary offering also included 9,887,641 shares offered by a forward seller as part of the stock purchase agreements.
Net proceeds from the equity units are expected to be $290.7 million or will be $334.4 million if the greenshoe is exercised in full.
Net proceeds from the common stock offering are expected to be $7.48 million.
Proceeds from the concurrent offerings will be used to repay debt, for capital expenditures and for general corporate purposes.
South Jersey Industries is a Folsom, N.J.-based energy services holding company.
| Issuer: | South Jersey Industries Inc.
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| Securities: | Equity units
|
| Amount: | $300 million or 6 million units
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| Greenshoe: | $45 million or 900,000 units
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| Maturity: | April 1, 2024
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| Bookrunner: | BofA Securities Inc.
|
| Joint lead managers: | Guggenheim Securities, LLC and J.P. Morgan Securities LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, Wells Fargo Securities, LLC, Citizens Capital Markets, Inc. and TD Securities (USA) LLC
|
| Distribution: | 8.75%
|
| Price: | Par-of-$50
|
| Yield: | 8.75%
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| Appreciation premium: | 17.5%
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| Appreciation price: | $26.14375
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| Appreciation rate: | Minimum of 1.9125, maximum 2.2472
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| Pricing date: | March 17
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| Settlement date: | March 22
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| Distribution: | SEC registered
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| Talk: | Yield of 8.25% to 8.75% and threshold appreciation premium of 17.5% to 22.5%
|
| Stock symbol: | NYSE: SJI
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| Stock price: | $22.25 in concurrent offering
|
| Market capitalization: | $2.26 billion
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