Black Hills Corp. Announces Pricing of $450 Million Debt Offering
Rhea-AI Summary
On May 13, 2024, Black Hills Corp. (NYSE: BKH) announced the pricing of a $450 million debt offering in the form of 6.00% senior unsecured notes due on January 15, 2035. The offering is expected to close on May 16, 2024, pending customary conditions. Net proceeds will be used to repay $600 million of outstanding notes maturing on August 23, 2024, with any surplus funds allocated for general corporate purposes. The offering is conducted via a prospectus supplement filed with the SEC, and copies are available through EDGAR or from Wells Fargo Securities and BofA Securities. This announcement does not constitute an offer to sell these securities in any unauthorized jurisdiction.
Positive
- Black Hills Corp. successfully priced a $450 million debt offering, indicating strong investor interest.
- The 6.00% interest rate on the notes is fixed, providing predictable debt servicing costs.
- The proceeds will primarily be used to refinance $600 million in maturing debt, which helps manage the company's debt maturity profile.
- Surplus funds from the offering may be used for general corporate purposes, adding financial flexibility.
Negative
- The company is taking on additional debt to address existing liabilities, which could increase financial risk.
- The interest rate of 6.00% on the new debt is relatively high, potentially leading to increased interest expenses.
- The $450 million raised does not fully cover the $600 million maturing debt, implying a need for additional financing or cash resources.
News Market Reaction 1 Alert
On the day this news was published, BKH declined 0.53%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
RAPID CITY, S.D., May 13, 2024 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced the pricing of a registered public debt offering of
The company plans to use the net proceeds from the offering, together with available cash or short-term borrowings under its existing facilities, to repay its
The offering is being made only by means of a prospectus supplement relating to the offering and accompanying base prospectus previously filed with the Securities and Exchange Commission, copies of which may be obtained for free by visiting EDGAR on the SEC Web site at www.sec.gov or, upon request, from Wells Fargo Securities, LLC., by calling toll-free at 1-800-645-3751 or BofA Securities, Inc., by calling toll-free at 1-800-294-1322.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Black Hills Corp.
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.34 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.
Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com
24-Hour Media Relations Line
888-242-3969
Caution Regarding Forward Looking Statements
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements, including our expectations about the completion and timing of the transaction described in this news release. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, including without limitations, the risk factors described in Item 1A of Part I of our 2023 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.
New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
What is the purpose of the $450 million debt offering announced by Black Hills Corp. on May 13, 2024?
What is the interest rate and maturity date for the new debt issued by Black Hills Corp.?
When is the expected closing date for Black Hills Corp.'s $450 million debt offering?
Which financial institutions are involved in Black Hills Corp.'s debt offering?
Where can I find the prospectus for Black Hills Corp.'s $450 million debt offering?
