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LONG-TERM DEBT
9 Months Ended
Sep. 30, 2022
Long-Term Debt, Unclassified [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT:Except as described below, there have been no significant changes to SJI's or SJG's long-term debt since December 31, 2021. See Note 14 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.
The consummation of the Merger would constitute a "Change in Control" under certain long-term debt agreements of each of SJI, SJG and ETG, and, as such, would provide applicable debt holders the right to have their debt repurchased. The Parent has entered into term-loan credit agreements with a syndicate of lenders intended to fund any such required repurchases. Upon consummation of the Merger, each of SJI, SJG and ETG is expected to sign a joinder to the relevant term-loan agreement to provide it with the funds necessary to make any such debt repurchases, which could result in additional interest to be paid.

In March 2022, SJG repaid $2.5 million of 4.84% MTNs, which are due annually with the final payment due March 2026.

In April 2022, SJG repaid $3.2 million of 3.74% MTNs, which are due annually with the final payment due April 2032.

In June 2022, SJG repaid $7.5 million of 4.93% MTNs, which are due annually with the final payment due June 2026.

In September 2022, SJG repaid $10.0 million of 3.00% MTNs, which are due annually with the final payment due September 2024.

In June 2022, SJI repaid $35.0 million of 3.71% MTNs at maturity.

On July 14, 2022, SJI entered into a Note Purchase Agreement ("July 2022 NPA") that provided for the Company to issue an aggregate of $400.0 million of senior unsecured notes in four series, as follows:

$100.0 million aggregate principal amount of the Company’s Senior Notes, Series 2022A, due July 14, 2027 (the “Series 2022A Notes”)
$100.0 million aggregate principal amount of the Company’s Senior Notes, Series 2022B, due July 14, 2029 (the “Series 2022B Notes”)
$120.0 million aggregate principal amount of the Company’s Senior Notes, Series 2022C, due July 14, 2032 (the “Series 2022C Notes”)
$80.0 million million aggregate principal amount of the Company’s Senior Notes, Series 2022D, due July 14, 2034 (the “Series 2022D Notes”) and, together with the Series 2022A Notes, the Series 2022B Notes and the Series 2022C Notes, the “Notes.”

The Company issued 50% of each series of Notes on July 14, 2022 (a total of $200.0 million of Notes) as follows:

$50.0 million aggregate principal amount of Series 2022A Notes at an interest rate of 5.35%
$50.0 million aggregate principal amount of Series 2022B Notes at an interest rate of 5.44%
$60.0 million aggregate principal amount of Series 2022C Notes at an interest rate of 5.60%
$40.0 million aggregate principal amount of Series 2022D Notes at an interest rate of 5.60%.

The Company issued the remaining 50% of each series of Notes on September 15, 2022 (a total of $200.0 million of Notes) as follows:

$50.0 million aggregate principal amount of Series 2022A Notes at an interest rate of 5.35%
$50.0 million aggregate principal amount of Series 2022B Notes at an interest rate of 5.44%
$60.0 million aggregate principal amount of Series 2022C Notes at an interest rate of 5.60%
$40.0 million aggregate principal amount of Series 2022D Notes at an interest rate of 5.60%.

The Company expects to use the net proceeds of the Series 2022A Notes, the 2022B Notes and the 2022C Notes to fund capital expenditures, to repay indebtedness, and for general corporate purposes. The Company is required to use the net proceeds of the Series 2022D Notes to finance or refinance one or more green investments, as defined in the Note Purchase Agreement.
The July 2022 NPA includes a carve-out for the Merger such that the Change in Control provision in that Merger Agreement will not be triggered by the consummation of the Merger. In addition, in the event of the sale of a Substantial Part (as defined in the Note Purchase Agreement) of the assets of the Company and its subsidiaries, the Company may be required to use a portion of such proceeds to prepay or retire Senior Indebtedness, which term is defined in the Note Purchase Agreement and includes, among other things, the Notes.