By Lisa Kerner
Charlotte, N.C., Sept. 29 – South Jersey Industries, Inc. issued $50 million of 3.05% series 2014A-3 notes due 2019 and $60 million of floating-rate series 2014B-2 notes due 2019 on Friday, according to an 8-K filing with the Securities and Exchange Commission.
The proceeds will be used to refinance debt and for general corporate purposes.
In June, the company announced it agreed to issue a total of $240 million of medium-term senior notes. At that time, South Jersey issued $60 million of 3.05% series 2014A-1 notes due 2019 and $40 million of floating-rate series 2014B-1 notes due 2019.
South Jersey issued $30 million of 3.05% series 2014A-2 notes due 2019 on Aug. 15.
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%.
Interest is payable semiannually on the fixed-rate notes and quarterly on the floating-rate notes.
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.
As previously reported, 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: | 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: | Sept. 26
|
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