South Jersey Industries offers $300 million three-year equity units at 8.25%-8.75%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., March 16 – South Jersey Industries Inc. plans to price $300 million, or 6 million $50-par equity units, after the market close on Wednesday with price 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. is the bookrunner for the registered offering, which carries a greenshoe of $45 million, or 900,000 units.

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 plans to price a secondary offering of $5 million shares of common stock.

Proceeds 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.

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