By Lisa Kerner
Charlotte, N.C., June 27 – South Jersey Industries, Inc. agreed to issue $240 million of medium-term senior notes, according to an 8-K filing with the Securities and Exchange Commission.
On Thursday, the company issued $100 million of notes as follows:
• $60 million of 3.05% notes, series 2014A-1, due June 26, 2019; and
• $40 million of floating-rate notes, series 2014B-1, due June 26, 2019.
Interest on the series 2014A-1 notes is payable on June 26 and Dec. 26 of each year.
The series 2014B-1 notes bear interest at Libor plus 132 basis points. Interest is payable quarterly beginning on Sept. 26. For the first quarter, interest accrues at an annual rate of 1.56%.
On Aug. 15, South Jersey expects to issue $30 million of 3.05% notes, series 2014A-2, due Aug. 15, 2019.
On Sept. 26, the company expects to issue the remaining notes as $50 million of 3.05% notes, series 2014A-3, due Sept. 26, 2019 and $60 million of floating-rate notes, series 2014B-2, due Sept. 26, 2019.
The proceeds will be used to refinance debt and for general corporate purposes.
The series 2014A notes have a make-whole call at Treasuries plus 50 basis points.
The series 2014B notes are callable at par plus a prepayment premium of 3% in year one, 2% in year two and 1% in year three. There is no prepayment premium in year four or five.
Upon a change of control, the company must offer to prepay the notes at par.
Purchasers include Metropolitan Life Insurance Co., Axis Reinsurance Co., Northwestern Mutual Life Insurance Co. and Woodmen of the World Life Insurance Society.
Hammonton, N.J.-based South Jersey is a publicly held energy services holding company for a natural gas utility and other non-regulated companies.
| Issuer: | South Jersey Industries, Inc.
|
| Issue: | Medium-term senior notes
|
| Amount: | $240 million
|
| Announcement date: | June 26
|
| Distribution: | Private placement
|
| Purchasers: | Metropolitan Life Insurance Co., Axis Reinsurance Co., Northwestern Mutual Life Insurance Co. and Woodmen of the World Life Insurance Society
|
|
|
| Series 2014A-1 notes
|
| Amount: | $60 million
|
| Maturity: | June 26, 2019
|
| Coupon: | 3.05%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | June 26
|
|
|
| Series 2014A-2 notes
|
| Amount: | $30 million
|
| Maturity: | Aug. 15, 2019
|
| Coupon: | 3.05%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Aug. 15
|
|
|
| Series 2014A-3 notes
|
| Amount: | $50 million
|
| Maturity: | Sept. 26, 2019
|
| Coupon: | 3.05%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Sept. 26
|
|
|
| Series 2014B-1 notes
|
| Amount: | $40 million
|
| Maturity: | June 26, 2019
|
| Coupon: | Libor plus 132 bps
|
| Call option: | At par plus prepayment premium of 3% in year one, 2% in year two, 1% in year three and zero in years four and five
|
| Settlement date: | June 26
|
|
|
| Series 2014B-2 notes
|
| Amount: | $60 million
|
| Maturity: | Sept. 26, 2019
|
| Coupon: | Floating rate
|
| Call option: | At par plus prepayment premium of 3% in year one, 2% in year two, 1% in year three and zero in years four and five
|
| Settlement date: | Sept. 26
|
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