LINES OF CREDIT AND SHORT-TERM BORROWINGS

9 Months Ended

Sep. 30, 2022

LINES OF CREDIT AND SHORT-TERM BORROWINGS

LINES OF CREDIT & SHORT-TERM BORROWINGS:

Credit facilities and available liquidity as of September 30, 2022 were as follows (in thousands):


Company	Total Facility		Usage			Available Liquidity		Expiration Date
SJI:
SJI Syndicated Revolving Credit Facility	$	500,000	$	7,100	(A)	$	492,900	September 2026




SJG:
Commercial Paper Program/Revolving Credit Facility	250,000		97,300		(B)	152,700		September 2026

ETG:
ETG Revolving Credit Facility	250,000		107,800		(C)	142,200		September 2026

Total	$	1,000,000	$	212,200		$	787,800

(A) Includes letters of credit outstanding in the amount of $7.1 million, which is used for various construction and operating activities.

(B) Includes letters of credit outstanding in the amount of $1.9 million, which supports the remediation of environmental conditions at certain locations in SJG's service territory.

For SJI and SJG, the amount of usage shown in the table above, less the letters of credit noted in (A)-(C) for SJI and (B) for SJG above, equals the amounts recorded as Notes Payable on the respective condensed consolidated balance sheets as of September 30, 2022.

SJI, SJG and ETG (collectively, the "Borrowers") have an unsecured, five-year master revolving credit facility (the "Credit Facility") with a syndicate of banks, which expires on September 1, 2026, unless earlier terminated or extended in accordance with its terms. There have been no significant changes to the nature or balances of this Credit Facility, except for the usage shown in the table above, since December 31, 2021, which are described in Note 13 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021.

There have been no significant changes to the nature or balances of SJG's commercial paper program since December 31, 2021, which are described in Note 13 to the Consolidated Financial Statements in Item 8 of SJI’s and SJG's Annual Report on Form 10-K for the year ended December 31, 2021.

Although there can be no assurance, management believes that actions presently being taken to pay off or refinance the short-term debt and borrowings that are due within the next year will be successful, as the Company has been successful in refinancing debt in the past. No adjustments have been made to the financial statements to account for this uncertainty.

SJI, SJG and ETG were all in compliance with the financial covenants in their respective borrowing arrangements described herein and in Note 14 as of September 30, 2022.

The consummation of the Merger would constitute a "Change in Control" under the Revolving Credit Facility, and, as such, would create an event of default, resulting in amounts outstanding being payable. The Parent has entered into a five-year revolving credit agreement with a syndicate of lenders, with the expectation that upon consummation of the Merger, each of SJI, SJG and ETG will sign joinders to that new credit agreement and become borrowers thereunder with available credit and other terms similar to the Revolving Credit Agreement, however it could result in additional interest to be paid. At such time, the Revolving Credit Agreement would be terminated.

The weighted average interest rate on these borrowings, which changes daily, were as follows:


	September 30, 2022		September 30, 2021
Weighted average interest rate on borrowings:
SJI (inclusive of SJG, ETG and SJIU)	3.90	%	0.69	%
SJG	1.42	%	0.18	%

Average borrowings and maximum amounts outstanding on these facilities were as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Average borrowings outstanding, not including LOC:
SJI (inclusive of all subsidiaries' facilities)	$	249,350	$	83,500	$	209,811	$	169,000
SJG	$	40,150	$	47,000	$	35,644	$	24,200

Maximum amounts outstanding, not including LOC:
SJI (inclusive of all subsidiaries' facilities)	$	366,800	$	159,800	$	375,300	$	452,900
SJG	$	110,300	$	87,300	$	110,300	$	87,300