SJI South Jersey Industries

Price Chart

Executive Summary

South Jersey Industries has commenced a cash tender offer to purchase any and all of its $287.5 million outstanding 2018 Series A 3.70% junior subordinated notes due 2031 at $920 per $1,000 principal amount. The offer is contingent on the pricing of a new subordinated notes offering and is not conditioned on a minimum tender amount. This debt refinancing move is routine for a regulated utility and has no material impact on equity fundamentals.

Key Financial Metrics

Actionable Insight

Key Facts

• Tender offer for $287.5 million aggregate principal amount of 3.70% junior subordinated notes due 2031
• Total consideration of $920 per $1,000 principal amount (an 8% discount to par)
• Offer expires May 26, 2026; settlement expected May 29, 2026
• Consummation conditioned on pricing of a new fixed-to-fixed reset rate subordinated notes offering
• No minimum tender condition; Mizuho Securities is dealer manager

Financial Impact

Up to $287.5 million in debt repurchase at an 8% discount to par, reducing future interest expense by ~$10.6 million annually if fully tendered

Risk Factors

• Tender offer may not be consummated if new notes offering is not priced on satisfactory terms
• Failure to consummate could negatively affect market price and liquidity of the notes
• Potential adverse legal or market developments could derail the transaction

Market Snapshot

Documents Analyzed

This report is based on 1 press release from GlobeNewswire.

US Market Status