DEBT

9 Months Ended

Jun. 30, 2021

9. DEBT

NJR and NJNG finance working capital requirements and capital expenditures through various short-term debt and long-term financing arrangements, including a commercial paper program and committed unsecured credit facilities.

Credit Facilities

A summary of NJR's credit facility and NJNG's commercial paper program and credit facility are as follows:


(Thousands)	June 30, 2021			September 30, 2020			Expiration Dates
NJR
Bank revolving credit facilities (1)	$	425,000		$	425,000		December 2023
Notes outstanding at end of period	$	124,800		$	125,350
Weighted average interest rate at end of period	0.87		%	1.49		%
Amount available at end of period (2)	$	289,612		$	289,356
Bank revolving credit facilities (1)	$	—		$	250,000
Notes outstanding at end of period	$	—		$	—
Weighted average interest rate at end of period	—		%	—		%
Amount available at end of period (2)	$	—		$	250,000
NJNG
Bank revolving credit facilities (3)	$	250,000		$	250,000		December 2023
Commercial paper outstanding at end of period	$	51,500		$	—
Weighted average interest rate at end of period	0.17		%	—		%
Amount available at end of period (4)	$	197,769		$	249,269

(1)Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts.

(2)Letters of credit outstanding total $10.6 million at June 30, 2021 and $10.3 million at September 30, 2020, which reduces the amount available by the same amount.

(3)Committed credit facilities, which require commitment fees of 0.075 percent on the unused amounts.

(4)Letters of credit outstanding total $731,000 for both June 30, 2021 and September 30, 2020, which reduces the amount available by the same amount.

On April 24, 2020, NJR entered into a 364-day $250 million revolving credit facility with an interest rate based on LIBOR plus 1.625 percent. After six months, all outstanding amounts under the credit facility would convert to a term loan and would have been due on April 23, 2021. In connection with entry into this credit facility, all outstanding borrowings under NJR's December 13, 2019, $150 million revolving line of credit facility were repaid. On October 24, 2020, there was no balance outstanding on the $250 million credit facility. As a result, the credit facility was considered terminated.

Amounts available under credit facilities are reduced by bank or commercial paper borrowings, as applicable, and any outstanding letters of credit. Neither NJNG nor the results of its operations are obligated or pledged to support the NJR credit or debt shelf facilities.

Long-term Debt

NJNG

NJNG received $4.0 million in December 2019, in connection with the sale leaseback of its natural gas meters. NJNG records a capital lease obligation that is paid over the term of the lease and has the option to purchase the meters back at fair value upon expiration of the lease. NJNG exercised early purchase options with respect to certain outstanding meter leases by making final principal payments of $1.2 million for both the nine months ended June 30, 2021 and 2020. There were no natural gas meter sale leasebacks recorded during the nine months ended June 30, 2021.

Clean Energy Ventures

Clean Energy Ventures enters into transactions to sell the commercial solar assets concurrent with agreements to lease the assets back over a period of five to 15 years. These transactions are considered failed sale leasebacks for accounting purposes and are therefore treated as financing obligations, which are typically secured by the renewable energy facility asset and its

future cash flows from SREC, TRECs and energy sales. ITCs and other tax benefits associated with these solar projects are transferred to the buyer, if applicable. Clean Energy Ventures continues to operate the solar assets, including related expenses, and retain the revenue generated from SRECs and energy sales, and has the option to renew the lease or repurchase the assets sold at the end of the lease term. During the three and nine months ended June 30, 2021, Clean Energy Ventures received proceeds of $5.5 million and $17.7 million, respectively, and $42.9 million for both the three and nine months ended June 30, 2020, in connection with the sale leaseback of commercial solar projects. The proceeds received were recognized as a financing obligation on the Unaudited Condensed Consolidated Balance Sheets.