Black Hills Corp. Upsizes Revolving Credit Facility to $750 Million and Closes $500 Million Term Loan

Source Press Release
Company Black Hills Corp 
Tags Debt Financing, Financing
Date August 09, 2016

Black Hills Corp. (NYSE: BKH) today announced that it has upsized its revolving credit facility to $750 million from $500 million and closed a $500 million unsecured term loan.

The amended and restated corporate revolving credit facility has a five-year term expiring Aug. 9, 2021, with two one-year extension options. The facility also has an accordion feature that allows Black Hills to increase the total commitment under the facility up to $1 billion under certain conditions. The facility will be used to fund working capital and for general corporate purposes.  The cost of borrowing under the new facility is based on the company's credit rating and is unchanged at a spread of 112.5 basis points over LIBOR. Current borrowings under the amended facility are $75 million with $26 million of letters of credit issued.

The new $500 million term loan has a 3-year term with a maturity date of Aug. 9, 2019. The cost of borrowing under the loan is based on LIBOR plus a spread based on the company's credit rating, which is currently 95 basis points per annum. Proceeds of the term loan will be used to repay existing corporate debt.

"We are pleased with the increased commitment from our banks in our credit facility and term loan," said Richard W. Kinzley, senior vice president and chief financial officer of Black Hills Corp. "The upsized facility and term loan will continue to provide flexible and low-cost funding in support of our growth initiatives."

U.S. Bank N.A. is the administrative agent for the Black Hills revolving credit facility. U.S. Bank N.A., JP Morgan Chase Bank, N.A., MUFG Union Bank, N.A. and Wells Fargo Securities, LLC are co-lead arrangers and co-book runners.

JP Morgan Chase Bank, N.A., is the administrative agent for the Black Hills term loan. U.S. Bank N.A., MUFG Union Bank, N.A. and Wells Fargo Securities, LLC are co-lead arrangers and co-book runners.

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