By Mary-Katherine Stinson
Lexington, Ky., April 2 – Otter Tail Power Co. completed a $120 million private placement of senior notes on March 28, according to an 8-K filed with the Securities and Exchange Commission.
The notes sold included $60 million of 5.48% series 2024A senior notes due April 1, 2034 and $60 million of 5.77% series 2024B senior notes due April 1, 2054.
The notes are callable with a Treasuries plus 50 basis points make-whole premium before they become callable at par. The par calls begin on or after Jan. 1, 2034 for the series 2024A notes and on or after Oct. 1, 2053 for the series 2024B notes.
Otter Tail Power must prepay the notes at par if a change of control occurs.
KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC were the agents.
Otter Tail used in-house counsel and Dorsey & Whitney LLP for legal advice.
ArentFox Schiff LLP is special counsel to the purchasers.
The purchasers were listed as Teachers Insurance and Annuity Association of America, Thrivent Financial for Lutherans, CoBank, ACB, Transamerica Life Insurance Co., Genworth Life Insurance Co., Modern Woodmen of America, State Farm Life Insurance Co., State Farm Insurance Companies Employee Retirement Trust, State Farm Life and Accident Assurance Co., United of Omaha Life Insurance Co., Mutual of Omaha Insurance Co., American Family Mutual Insurance Co., SI and Southern Farm Bureau Life Insurance Co.
Proceeds were earmarked to fund capital expenditures, 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: | $120 million
|
| Issue: | Senior notes
|
| Agents: | KeyBanc Capital Markets Inc. and Wells Fargo Securities, LLC
|
| Counsel to issuer: | In-house counsel and Dorsey & Whitney LLP
|
| Counsel to purchasers: | ArentFox Schiff LLP
|
| Change of control: | At par
|
| Settlement date: | March 28
|
| Distribution: | Private placement
|
|
|
| Series 2024A notes
|
| Amount: | $60 million
|
| Maturity: | April 1, 2034
|
| Coupon: | 5.48%
|
| Price: | Par
|
| Yield: | 5.48%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Jan. 1, 2034, then a par call
|
|
|
| Series 2024B notes
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| Amount: | $60 million
|
| Maturity: | April 1, 2054
|
| Coupon: | 5.77%
|
| Price: | Par
|
| Yield: | 5.77%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2053, then a par call
|
|
|
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