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South Jersey Industries secures loans, private placement deal to boost liquidity

South Jersey Industries Inc. took steps to increase its liquidity and secure ongoing funding for its 2020 capital program as it prepares for the impact of the novel coronavirus pandemic on its business.

The company eliminated its near-term debt maturities by executing a $200 million 18-month term loan and priced a $525 million private placement, according to an April 6 news release. The private placement is expected to close on April 16 and is composed of $400 million drawn at closing to refinance a maturing term loan and $125 million drawn after six months, which will be used to fund 2020 capital expenditures.

In addition, South Jersey Industries on March 26 entered into an unsecured $150 million 364-day term loan agreement. The company also launched a $200 million at-the-market program for added flexibility in addressing its 2020 equity needs.

The company has over $470 million of available capacity on its revolvers and recent capital markets transactions. South Jersey Industries said its gas deliveries to customers have not been impacted and it has not experienced significant reductions in sales volumes. However, some construction activity has been postponed under directives from the governor of New Jersey.

Headquartered in Folsom, N.J., South Jersey Industries delivers gas to about 700,000 customers in New Jersey and Maryland.

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