Otter Tail prices $80 million notes; Fibra sells $75 million; Revere Bank wraps debt sale

By Devika Patel

Knoxville, Tenn., Sept. 27 – Three companies announced private placements on Tuesday, with Otter Tail Corp. selling $80 million of 3.55% guaranteed senior notes due Dec. 15, 2026 in a Sept. 23 sale via agents BofA Merrill Lynch and U.S. Bancorp Investments Inc. and Mexico City real estate investment trust Fibra Macquarie Mexico issuing $75 million of 10-year 5.44% notes. Laurel, Md.’s Revere Bank also completed a $31 million placement of 10-year subordinated debt (KBRA: BBB-) due 2026.

The Otter Tail notes were sold to investors Union Fidelity Life Insurance Co., Erie Family Life Insurance Co., Lincoln Benefit Life Co., Metropolitan Life Insurance Co., MetLife Insurance Co. USA, General American Life Insurance Co., MetLife Insurance K.K., Guardian Life Insurance Co. of America and American Equity Investment Life Insurance Co. The notes have a make-whole call until Sept. 15, 2026 and are then callable at par. Proceeds from the Otter Tail placement will be used to repay the Fergus Falls, Minn.-based electric utility company’s debt, including its $52.33 million remaining 9% senior notes due Dec. 15, 2016, as well as for general corporate purposes.

The Revere Bank subordinated debt will accrue interest at 5.625% for the first five years and then at a rate equal to Libor plus 440.9 basis points.

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