By Lisa Kerner
Charlotte, N.C., Aug. 4 - Otter Tail Power Co. agreed to sell $140 million of 4.63% senior notes due Dec. 1, 2021 in a private placement.
The notes are expected to be issued on Dec. 1, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds will be used to retire $90 million total principal amount of Otter Tail's 6.63% senior notes due Dec. 1, 2011 and $10.4 million total principal amount of its pollution control refunding revenue bonds due Dec. 1, 2012. Also, proceeds will be used to repay short-term debt and for other general corporate purposes.
The notes have a make-whole call at Treasuries plus 50 basis points.
Under the note purchase agreement, Otter Tail may not permit its interest-bearing debt to exceed 60% of total capitalization, its interest and dividend coverage ratio to be less than 1.5 to 1.0 or its priority debt to exceed 20% of total capitalization.
Purchasers included Northwestern Mutual Life Insurance Co., Sun Life Assurance Co., ING US Annuity Life Insurance Co., ReliaStar Life Insurance Co. and Travelers Casualty and Surety Co. of America.
Otter Tail is a Fergus Falls, Minn.-based electric utility company.
| Issuer: | Otter Tail Power Co.
|
| Issue: | Senior notes
|
| Amount: | $140 million
|
| Maturity: | Dec. 1, 2021
|
| Coupon: | 4.63%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Pricing date: | Aug. 4
|
| Settlement date: | Dec. 1
|
| Distribution: | Private placement
|
| Purchasers: | Northwestern Mutual Life Insurance Co., Sun Life Assurance Co., ING US Annuity Life Insurance Co., ReliaStar Life Insurance Co. and Travelers Casualty and Surety Co. of America
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
