Published on 5/23/2022 in the Prospect News Private Placement Daily.
New Issue: Otter Tail wraps $230 million three-part notes via $90 million tranche
By Devika Patel
Knoxville, Tenn., May 23 – Otter Tail Power Co. completed a $230 million private placement of senior notes with a $90 million tranche on May 20, according to an 8-K filed with the Securities and Exchange Commission. The deal priced on June 10, 2021, and the company raised $140 million on Nov. 29, 2021.
The company sold $90 million of 3.77% series 2022A notes due May 20, 2052 on May 20.
The notes sold on Nov. 29, 2021 included $40 million of 2.74% series 2021A notes due Nov. 29, 2031 and $100 million of 3.69% series 2021B notes due Nov. 29, 2051.
J.P. Morgan Securities, LLC and Wells Fargo Securities, LLC were the agents.
Proceeds were earmarked to refinance debt and for general corporate purposes.
Otter Tail is a Fergus Falls, Minn.-based electric utility company.
| Issuer: | Otter Tail Power Co.
|
| Amount: | $230 million
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| Issue: | Senior notes
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| Agents: | J.P. Morgan Securities, LLC and Wells Fargo Securities, LLC
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| Pricing date: | June 10, 2021
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| Settlement dates: | Nov. 29, 2021 (for $140 million series 2021A and series 2021B notes), May 20 (for $90 million series 2022A notes)
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| Distribution: | Private placement
|
|
|
| Series 2021A notes
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| Amount: | $40 million
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| Maturity: | Nov. 29, 2031
|
| Coupon: | 2.74%
|
| Call: | Make-whole call until May 29, 2031, then a par call
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| Settlement date: | Nov. 29, 2021
|
|
|
| Series 2021B notes
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| Amount: | $100 million
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| Maturity: | Nov. 29, 2051
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| Coupon: | 3.69%
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| Call: | Make-whole call until May 29, 2051, then a par call
|
| Settlement date: | Nov. 29, 2021
|
|
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| Series 2022A notes
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| Amount: | $90 million
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| Maturity: | May 20, 2052
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| Coupon: | 3.77%
|
| Call: | Make-whole call until Nov. 20, 2051, then a par call
|
| Settlement date: | May 20
|
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