South Jersey Industries Inc. on Aug. 7 entered into an unsecured, five-year revolving credit agreement for $400 million to pay down its $300 million 2011 revolver debt, with the remaining amount to be allocated for general corporate purposes.
The company may increase the revolver by up to $100 million, although no lender is obligated to increase its commitment, according to a Form 8-K filed Aug. 10.
The five-year credit facility provides for swingline loans of up to a total of $40 million as well as letters of credit of up to $200 million in total, of which an aggregate $87.5 million is fronted.
The credit agreement is scheduled to expire on Aug. 5, 2022, unless earlier terminated or extended in accordance with its terms. The agreement is syndicated among a number of banks, including Wells Fargo National Bank, National Association, as administrative agent, Bank of America N.A., JP Morgan Chase Bank N.A., PNC Bank, National Association and Citizens Bank of Pennsylvania.