New Jersey Resources Corp Announces $150M Senior Note Sale by NJNG

What Happened
New Jersey Resources Corporation (NJR) reported that its wholly owned subsidiary, New Jersey Natural Gas Company (NJNG), entered a Note Purchase Agreement on August 20, 2026 to sell $150,000,000 aggregate principal amount of secured senior notes in a private placement. The issuance consists of three series of notes: Series A ($50M), Series B ($50M) and Series C ($50M). The Series A and Series B sales closed on August 20, 2026; the Series C sale is expected to close on October 22, 2026. Proceeds will be used for general corporate purposes, including refinancing short-term debt and funding capital expenditures.

Key Details

• Total amount: $150,000,000 in senior notes (three $50M series).
• Interest rates and maturities: Series A — 5.43% (stated due Aug 20, 2036); Series B — 6.04% (due Aug 20, 2056); Series C — 5.43% (due Oct 22, 2036; expected close Oct 22, 2026).
• Payment schedule: Series A & B interest payable Aug 20 and Feb 20 each year beginning Feb 20, 2027; Series C interest payable Oct 22 and Apr 22 beginning Apr 22, 2027.
• Security and recourse: The Notes will be secured ratably by an equal principal amount of NJNG’s First Mortgage Bonds under supplemental indentures. NJR (the parent) is not directly or contingently liable on the Notes.
• Private placement terms: Notes are unregistered under the Securities Act, subject to transfer restrictions, and include customary covenants (limiting liens, asset dispositions, affiliate transactions, and certain mergers) and events of default.
• Use of proceeds: General corporate purposes, including refinancing/retiring short-term debt and capital expenditures.

Why It Matters
This transaction increases NJNG’s long-term debt by $150M and provides financing to refinance short-term debt and support capital spending—actions that can affect interest expense and the company’s liquidity profile. The notes are secured and rank ratably with existing First Mortgage Bonds, which is relevant to the company’s secured creditors and the collateral pool. Because NJR is not obligated on the notes, the direct debt claim rests with NJNG, limiting immediate direct liability for the parent. The private placement structure and transfer restrictions mean these notes won’t be freely tradable in public markets. Investors should note the new interest obligations, maturities, and the covenants that may constrain certain corporate actions.