Market Report -- In Play (BKH)

October 22, 2009 5:59 PM ET

Article tools

Stocks mentioned in this article: Black Hills Corp (BKH) Stock Quote, Chart, News, Add to Watchlist
Related topics: Movers

Black Hills Power prices $180 mln of first mortgage bonds Co announced that Black Hills Power, an electric utility subsidiary of Black Hills Corp., priced a $180 mln bond offering (in aggregate principal amount) of 6.125% series AF first mortgage bonds due 2039. The bonds were priced at 99.931% of par and a reoffer yield of 6.13%. Black Hills expects the issuance and delivery to occur on October 27, 2009, subject to customary closing conditions. Net proceeds will be used to repay ~$103.3 mln of principal and interest on indebtedness borrowed from Black Hills Corp primarily to fund the construction of Wygen III, a 110 MW coal-fired base load electric generation facility located near Gillette, Wyoming, which is expected to become operational in mid 2010. In addition, Black Hills Power expects to use approximately $27 million of net proceeds to pay the utility's remaining share of costs to complete the construction of Wygen III, and $30 mln to repay the utility's Series AC, 8.06% first mortgage bonds at their maturity in February 2010.

Briefing.com is the leading Internet provider of live market analysis for U.S. Stock, U.S. Bond, and world FX market participants.