Regulated natural gas utility South Jersey Industries (NYSE:SJI) has announced the offering of some Jr Subordinated Notes (baby bonds).
The issue will have a maturity date way out in 2079 with an early redemption period starting in 2024. The issue will have the ability to have interest payments deferred for up to 40 consecutive quarters without a default occurring. While we don’t like these kind of stipulations they are not unusual in utility issues.
Being baby bonds the interest payments are not qualified distributions. I am not seeing a rating at this moment on the new offering, but Moodys has some secured debt at A1–the new offering is NOT secured debt.
This issue will not trade on the OTC grey market prior to big board trading, but occasionally with a call to your broker you may be able to pick up shares prior to official trading.
A shout out to Eugene and mcg who noted this one within 2 minutes of when I saw the announcement. mcg has posited an estimated coupon of 5.675-5.75%ish.