DEBT

6 Months Ended

Mar. 31, 2020

9. DEBT

NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Credit Facilities

On December 13, 2019, NJR entered into a four-month, $150 million revolving line of credit facility. On March 24, 2020, NJR amended the revolving line of credit facility to extend the termination date from April 13, 2020 to July 13, 2020. The revolving line of credit facility may be prepaid at any time without premium or penalty other than normal break funding costs. Proceeds were used for working capital or other general business purposes of NJR.

On April 24, 2020, NJR entered into a 364-day $250 million revolving credit facility with an interest rate based on LIBOR plus 1.625 percent. After six months, all outstanding amounts under the credit facility will convert to a term loan and will be due on April 23, 2021. Proceeds will be used to fund ongoing ordinary working capital requirements and other general corporate purposes. In connection with entry into this credit facility, all outstanding borrowings under NJR's December 13, 2019, $150 million revolving line of credit facility were repaid.

A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:



(Thousands)	March 31, 2020			September 30, 2019			Expiration Dates
NJR
Bank revolving credit facilities⁽¹⁾	$	425,000		$	425,000		December 2023
Notes outstanding at end of period	$	180,000		$	25,450
Weighted average interest rate at end of period	3.23		%	3.04		%
Amount available at end of period ⁽²⁾	$	240,250		$	394,800
Bank revolving credit facilities⁽¹⁾	$	150,000		$	—		July 2020
Notes outstanding at end of period	$	150,000		$	—
Weighted average interest rate at end of period	2.14		%	—		%
Amount available at end of period⁽²⁾	$	—		$	—
NJNG
Bank revolving credit facilities ⁽¹⁾	$	250,000		$	250,000		December 2023
Commercial paper outstanding at end of period	$	—		$	—
Weighted average interest rate at end of period	1.68		%	—		%
Amount available at end of period ⁽³⁾	$	249,269		$	249,269


(1)	Committed credit facilities, which require commitment fees on the unused amounts.


(2)	Letters of credit outstanding total $4.8 million for both March 31, 2020 and September 30, 2019, which reduces amount available by the same amount.


(3)	Letters of credit outstanding total $731,000 for both March 31, 2020 and September 30, 2019, which reduces the amount available by the same amount.

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities.

On October 9, 2019, NJR entered into a $350 million Bridge Facility, which was used primarily to finance the Leaf River acquisition. The Bridge Facility accrues interest at the LIBOR rate for a 1-month interest period plus 0.875 percent during the first 180 days, and 1.075 percent after 180 days. Loans under the Bridge Facility are required to be prepaid to the extent of new cash proceeds received upon the issuance of equity of NJR, the incurrence of indebtedness by NJR or its subsidiaries, the disposition of assets by NJR or its subsidiaries or upon other specified events, in each case subject to certain exceptions set forth in the Bridge Facility. As of March 31, 2020, there were $137.1 million in borrowings remaining against the facility. The net proceeds from the December 2019 equity issuance were used to pay down the Bridge Facility.

Long-term Debt

NJNG

NJNG received $4 million and $9.9 million in December 2019 and 2018, respectively, in connection with the sale-leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.2 million and $1.1 million during the six months ended March 31, 2020 and 2019, respectively.