SOUTH JERSEY INDUSTRIES, INC. ANNOUNCES PROPOSED COMMON STOCK AND EQUITY UNITS OFFERINGS - Seite 2

Settlement of the forward sale agreement will occur on one or more dates no later than approximately 12 months after the date of the prospectus supplement relating to the Common Stock offering. Upon any physical settlement of the forward sale agreement, the Company will issue and deliver to the Forward Purchaser shares of Common Stock in exchange for cash proceeds per share of Common Stock equal to the forward sale price, which will initially be the price at which the underwriters agree to buy the Common Stock in the Common Stock offering, and will be subject to certain adjustments as provided in the forward sale agreement. The Company may, in certain circumstances, elect cash or net share settlement for all or a portion of its obligations under the forward sale agreement.

Net proceeds from these offerings will be used for the repayment of indebtedness, capital expenditures primarily for regulated businesses, including infrastructure investments at our utility business, and general corporate purposes. The Company will not receive any proceeds from the sale of the Common Stock sold by the Forward Purchaser (or its affiliate) to the underwriters. The Company intends to use any net proceeds that it receives upon settlement of the forward sale agreement as described above.

The Company intends to grant the underwriters a 30-day option to purchase up to an additional $33.75 million of shares of Common Stock and an option to purchase, within a 13-day period beginning on, and including, the date on which the Equity Units are first issued, up to an additional 900,000 Equity Units, upon the same terms as their respective offerings. 

Each Equity Unit will be issued in a stated amount of $50 and will initially consist of a contract to purchase shares of Common Stock and a 1/20, or 5%, undivided beneficial ownership interest in $1,000 principal amount of the Company’s 2021 Series B remarketable junior subordinated notes due 2029.  Pursuant to the purchase contracts, holders are required to purchase Common Stock no later than April 1, 2024.  The Company intends to list Equity Units in the form of Corporate Units on the New York Stock Exchange, and expects trading to commence within 30 days of the date of initial issuance (subject to listing approval).