By Lisa Kerner
Charlotte, N.C., March 5 - Otter Tail Power Co., an Otter Tail Corp. subsidiary, completed its private placement of $60 million 4.68% series A senior notes due 2029 and $90 million 5.47% series B senior notes due 2044 on Feb. 27, according to an 8-K filing with the Securities and Exchange Commission.
The company entered into the note purchase agreement in August.
J.P. Morgan Securities LLC acted as placement agent.
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.
As previously reported, 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.
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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| Agent: | J.P. Morgan Securities LLC
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| Pricing date: | Aug. 14, 2013
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| Settlement date: | Feb. 27
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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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