By Lisa Kerner
Charlotte, N.C., Jan. 5 - South Jersey Gas Co. issued $10 million principal amount of medium-term notes, series C 2010-2, tranche A due Dec. 30, 2025, to Modern Woodmen of America and $45 million principal amount of medium-term notes, series C 2010-2, tranche B due Dec. 30, 2027 to Massachusetts Mutual Life Insurance Co., according to a form 8-K filed with the Securities and Exchange Commission.
The tranche A notes bear interest at 3.63%.
South Jersey Gas is required to prepay $909,000 principal amount of the notes each Dec. 30, beginning Dec. 30, 2015, with the entire unpaid principal amount of the notes due and payable on Dec. 30, 2025.
The tranche B notes bear interest at 4.03%.
South Jersey Gas is required to prepay $9 million principal amount of the notes each Dec. 30, beginning Dec. 30, 2023, with the entire unpaid principal amount of the notes due and payable on Dec. 30, 2027.
The company may prepay all or a portion of the notes at any time in an amount not less than 5% of the total principal amount of the notes outstanding at par plus interest and a make-whole amount determined using Treasuries plus 50 basis points.
Proceeds will be used to repay short-term debt and for general corporate purposes, including funding capital expenditure requirements.
As previously reported in July, South Jersey Gas issued $45 million principal amount of 4.93% medium-term notes, series C 2010-1, tranche B due June 30, 2026 to buyers that included Massachusetts Mutual, Metropolitan Life Insurance Co., C.M. Life Insurance Co. and MassMutual Asia Ltd.
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 C 2010-2
|
| Amount: | $55 million
|
| Price: | Par
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Dec. 30
|
| Distribution: | Private placement
|
|
|
| Tranche A
|
| Amount: | $10 million
|
| Maturity: | Dec. 30, 2025
|
| Coupon: | 3.63%
|
| Purchaser: | Modern Woodmen of America
|
|
|
| Tranche B
|
| Amount: | $45 million
|
| Maturity: | Dec. 30, 2027
|
| Coupon: | 4.03%
|
| Purchaser: | Massachusetts Mutual Life Insurance Co.
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
