South Jersey Industries expands revolver to $500 million

By Marisa Wong

Morgantown, Va., June 12 – South Jersey Industries, Inc. entered into an amendment on June 7 with Wells Fargo National Bank, NA as administrative agent to its five-year revolving credit agreement dated Aug. 7, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increases by $100 million the amount the company can borrow under the credit agreement in the form of revolving loans to a total aggregate amount of $500 million from $400 million.

In addition, as part of the total $500 million extension of credit, the credit agreement provides for swingline loans of up to $50 million, increased from $40 million, and letters of credit of up to $200 million, unchanged from previously.

The company may increase the revolver up to a maximum aggregate amount of $100 million, for a total facility of up to $600 million.

Loans bear interest at Libor plus an applicable margin ranging from 90 basis points to 147.5 bps, depending on the company’s debt rating.

The credit agreement includes a financial covenant limiting the ratio of consolidated debt to consolidated total capitalization to not more than 0.70 to 1.0.

Also on June 7, subsidiaries Elizabethtown Gas Co., Elkton Gas Co. and SJI Utilities, Inc. entered into an amendment with JPMorgan Chase Bank, NA as administrative agent to Elizabethtown and Elkton’s two -year revolving credit agreement dated June 29, 2018 with South Jersey as guarantor.

The amendment adds SJI Utilities as an additional borrower and extends the termination date of the credit agreement to June 7, 2021 from June 29, 2020.

The $200 million facility includes a $20 million sublimit for swingline loans and a $50 million sublimit for letters of credit.

Borrowers may increase the revolver by up to $50 million, for a total facility of up to $250 million.

Loans bear interest at Libor plus 69 bps to 137.5 bps, depending on ratings.

The credit agreement also includes a financial covenant limiting the ratio of consolidated debt to consolidated total capitalization to not more than 0.70 to 1.0.

Folsom, N.J.-based South Jersey is a publicly held energy services holding company for a natural gas utility and other non-regulated companies.

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