By Devika Patel
Knoxville, Tenn., Dec. 15 – Otter Tail Corp. settled an $80 million private placement of 3.55% guaranteed senior notes due Dec. 15, 2026 on Dec. 13, according to an 8-K filed Thursday with the Securities and Exchange Commission. BofA Merrill Lynch and U.S. Bancorp Investments Inc. were the agents for the notes, which priced on Sept. 23.
The notes have a make-whole call until Sept. 15, 2026 and are then callable at par.
Proceeds will be used to repay debt, including the $52.33 million remaining of Otter Tail’s 9% senior notes due Dec. 15, 2016, and for general corporate purposes.
The investors were Union Fidelity Life Insurance Co., Erie Family Life Insurance Co., Lincoln Benefit Life Co., Metropolitan Life Insurance Co., MetLife Insurance Co. USA, General American Life Insurance Co., MetLife Insurance K.K., Guardian Life Insurance Co. of America and American Equity Investment Life Insurance Co.
Otter Tail is a Fergus Falls, Minn.-based electric utility company.
| Issuer: | Otter Tail Corp.
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| Issue: | Guaranteed senior notes
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| Amount: | $80 million
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| Maturity: | Dec. 15, 2026
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| Coupon: | 3.55%
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| Call: | Make-whole call at Treasuries plus 50 bps until Sept. 15, 2026, then a par call
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| Agents: | BofA Merrill Lynch and U.S. Bancorp Investments Inc.
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| Investors: | Union Fidelity Life Insurance Co., Erie Family Life Insurance Co., Lincoln Benefit Life Co., Metropolitan Life Insurance Co., MetLife Insurance Co. USA, General American Life Insurance Co., MetLife Insurance K.K., The Guardian Life Insurance Co. of America and American Equity Investment Life Insurance Co.
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| Pricing date: | Sept. 23
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| Settlement date: | Dec. 13
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| Distribution: | Private placement
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