New Jersey Resources (NJR) Prices 5.7M Share Common Offering at $41.25/Sh

New Jersey Resources Corporation (NYSE: NJR) announced today it has priced an underwritten public offering of 5,700,000 shares of its common stock at a price per share of $41.25. In conjunction with the offering, NJR has granted the underwriters a 30-day option to purchase up to 845,454 additional shares of common stock either directly from NJR or from affiliates of Wells Fargo Bank, National Association and JPMorgan Chase Bank, National Association (the “forward counterparties”), at NJR’s election. Of the shares of common stock being offered, NJR expects to sell 5,333,334 shares to the underwriters in the offering, and an affiliate of Wells Fargo Bank, National Association expects to borrow and sell to such underwriters 220,000 shares in connection with its forward sale agreement described below and an affiliate of JPMorgan Chase Bank, National Association expects to borrow and sell to such underwriters 146,666 shares in connection with its forward sale agreement described below. Closing of this offering is expected to occur on or about December 9, 2019, subject to customary closing conditions.

NJR intends to use the net proceeds from the offering, and the net proceeds, if any, received upon the settlement of the forward sale agreements, to repay a portion of the borrowings under the bridge credit facility put in place to finance NJR’s October 2019 Leaf River Energy Center acquisition and for general corporate purposes.

Wells Fargo Securities, LLC and J.P. Morgan Securities LLC are acting as joint book-running managers of the offering and as representatives of the underwriters of the offering. BB&T Capital Markets, a division of BB&T Securities, LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are acting as senior co-managers and Goldman Sachs & Co. LLC, Janney Montgomery Scott LLC and Siebert Williams Shank & Co., LLC are acting as co-managers.

In connection with the offering, NJR has entered into separate forward sale agreements with each of the forward counterparties, providing for the sale by NJR to Wells Fargo Bank, National Association of 220,000 shares of common stock and the sale by NJR to JPMorgan Chase Bank, National Association of 146,666 shares of common stock, in each case, at an initial forward sale price per share of $40.0125, subject to certain adjustments, upon physical settlement of such forward sale agreements. Settlement of the forward sale agreements is expected to occur by September 30, 2020. NJR may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its obligations under either of the forward sale agreements. NJR will not initially receive any proceeds from the sale of its shares by affiliates of the forward counterparties to the underwriters.

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