By Lisa Kerner
Charlotte, N.C., Aug. 19 - Otter Tail Power Co., an Otter Tail Corp. subsidiary, agreed to issue $60 million 4.68% series A senior notes due Feb. 27, 2029 and $90 million 5.47% series B senior notes due Feb. 27, 2044 in a private placement.
The notes are expected to be issued on Feb. 27, 2014, according to a company news release.
J.P. Morgan Securities LLC acted as placement agent.
Otter Tail Power may prepay all or any part of the notes at 100% of the principal amount prepaid together with accrued interest and a make-whole amount.
Under the note purchase agreement, Otter Tail Power may not permit its interest-bearing debt to exceed 60% of total capitalization as of the end of any fiscal quarter.
Proceeds will be used to retire Otter Tail Power's $40.9 million senior term loan. The remaining proceeds will be used to repay short-term debt.
Otter Tail is a Fergus Falls, Minn.-based electric utility company.
| Issuer: | Otter Tail Power Co.
|
| Issue: | Senior notes
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| Amount: | $150 million
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| Pricing date: | Aug. 14, 2013
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| Settlement date: | Feb. 27, 2014
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| Distribution: | Private placement
|
|
|
| Series A notes
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| Amount: | $60 million
|
| Coupon: | 4.68%
|
| Maturity: | Feb. 27, 2029
|
|
|
| Series B notes
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| Amount: | $90 million
|
| Coupon: | 5.47%
|
| Maturity: | Feb. 27, 2044
|
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