South Jersey Industries units extend credit facility by one year, add Libor replacement terms

By Marisa Wong

Los Angeles, April 30 – South Jersey Industries, Inc. wholly owned subsidiary SJI Utilities, Inc. and its wholly owned subsidiary, Elizabethtown Gas Co., entered into a fourth amendment on April 26 to their two-year revolving credit agreement dated June 29, 2018 with JPMorgan Chase Bank, NA as administrative agent, according to an 8-K filed Friday with the Securities and Exchange Commission.

The amendment extends the termination date of the credit agreement to April 26, 2023 from April 29, 2022 and makes a provision for the expected transition to a new benchmark reference for interest rates upon the elimination of Libor as such a reference.

Other than that, no other material changes were made to the $200 million credit facility, proceeds of which may be used for general corporate purposes.

Interest is currently Libor plus an applicable margin ranging from 92.5 basis points to 150 bps, depending on the borrower’s debt rating.

The credit agreement contains a financial covenant limiting the ratio of indebtedness of each borrower and its subsidiaries on a consolidated basis to consolidated total capitalization of not more than 0.70 to 1.0.

The natural gas utility and other energy services holding company is based in Folsom, N.J.

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