NEW JERSEY RESOURCES CORPORATION (NYSE:NJR) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement.

On December 18, 2018, New Jersey Resources Corporation (NJR), as
borrower, entered into a 4-Month $100,000,000 Revolving Line of
Credit Facility, dated as of December 18, 2018 (the Revolver)
with PNC Bank, National Association (PNC Bank). The Revolver is
scheduled to terminate on April 18, 2019. The Revolver may be
prepaid at any time without premium or penalty other than normal
LIBOR break funding costs. Proceeds of the Revolver will be used
for working capital or other general business purposes of NJR.

Borrowings under the Revolver bear interest, at NJRs option: (i)
on the day of the proposed advance, at the Base Rate Option (as
defined in the Revolver) and (ii) three business days prior to
the proposed advance, at the LIBOR Option (as defined in the
Revolver) or Daily LIBOR Option (as defined in the Revolver).
Advances may be requested in amounts of at least $1,000,000 and
in $500,000 increments above such minimum. The commitment fees
rate for the unused portion of the Revolver may range from 0.075%
to 0.200%, depending on NJRs credit rating as determined in a
manner consistent with that certain Amended and Restated Credit
Agreement dated as of December 5, 2018, by and among NJR, the
guarantors thereto, the lenders party thereto, PNC Bank, National
Association, as Administrative Agent, JPMorgan Chase Bank, N.A.,
Wells Fargo Bank, National Association and U.S. Bank National
Association, as Syndication Agents, and Bank of America, N.A.,
Mizuho Bank, Ltd. and TD Bank, N.A., as Documentation Agents (the
Credit Agreement).

The Revolver contains representations, warranties, covenants,
conditions and defaults customary for transactions of this type
and/or the Credit Agreement, including but not limited to cross
default for breaches of the Credit Agreement. The occurrence of
an event of default under the Revolver and the associated
Committed Line of Credit Note (the Note) could result in all
loans and other obligations of NJR becoming immediately due and
payable and the Revolver being terminated.

A copy of the Revolver and the Note are filed as Exhibits 10.1
and 10.2 to this Current Report on Form 8-K and are incorporated
by reference into this Item 1.01. The foregoing summary of the
Revolver and the Note is qualified in its entirety by reference
to the text of the Revolver and the Note filed herewith.

NJR and its affiliates regularly engage PNC Bank to provide other
banking services. All of these engagements are negotiated at arms
length.

Item 2.03 Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The information set forth in Item 1.01 is incorporated in this
Item 2.03 by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

NEW JERSEY RESOURCES CORP Exhibit
EX-10.1 2 njrc3518471-ex101.htm 4-MONTH $100,…
To view the full exhibit click here

About NEW JERSEY RESOURCES CORPORATION (NYSE:NJR)

New Jersey Resources Corporation is an energy services holding company. The Company’s business is the distribution of natural gas through a regulated utility, which provides other retail and wholesale energy services to customers and investing in clean energy projects and midstream assets. It operates in four business segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services and Midstream. The Natural Gas Distribution segment consists of regulated natural gas services, off-system sales, capacity and storage management operations. The Energy Services segment consists of unregulated wholesale energy operations. The Clean Energy Ventures segment consists of capital investments in clean energy projects. The Midstream segment consists of investments in the midstream natural gas market, such as natural gas transportation and storage facilities. The Home Services and Other operations consist of heating, cooling and water appliance sales and installations, among others.