South jersey industries, inc. enters into an unsecured $100 million term loan credit agreement with bank of america, n.a

On september 23, 2019, south jersey industries, inc. entered into an unsecured $100 million term loan credit agreement (the “credit agreement”) with bank of america, n.a. (“bank of america”) as the lender. the entire amount was borrowed on september 23, 2019. the maturity date of the term loan is september 18, 2020, at which time the principal and any accrued but unpaid interest must be paid. any amounts repaid prior to the maturity date cannot be reborrowed. the term loan bears interest at a variable base rate or a variable london interbank offered rate (“libor”), at the company’s election. interest on base rate loans will be equal to the highest of the federal funds rate plus 0.5%; (b) the daily “prime rate” of bank of america; and (c) the one-month libor rate plus 1%; plus in each case, an applicable margin that may range from zero to 0.25%, depending on the company’s debt rating (as defined in the credit agreement). interest on libor loans will be determined by reference to libor plus an applicable margin that may range from 0.50% to 1.25%, depending on the company’s debt rating. the credit agreement contains customary representations, warranties and covenants, including a financial covenant limiting the ratio of indebtedness of the company and its subsidiaries on a consolidated basis to consolidated total capitalization (as such terms are defined in the credit agreement) of not more than 0.70 to 1.0, and customary events of default.
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