New Issue: Black Hills prices $400 million of 2.5% notes due 2030 at 185 bps over Treasuries

By Cristal Cody

Tupelo, Miss., June 12 – Black Hills Corp. priced $400 million of 2.5% 10-year senior notes (Baa2/BBB+/BBB+) on Friday at 99.658 to yield 1.539%, or a spread of 185 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes were talked at the 225 bps spread area.

Wells Fargo Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc. were the bookrunners.

The Rapid City, S.D., utility company will use the proceeds to repay short-term debt, for working capital and for general corporate purposes, including debt repayment or refinancing.

Issuer:	Black Hills Corp.
Amount:	$400 million
Maturity:	June 15, 2030
Description:	Senior notes
Bookrunners:	Wells Fargo Securities LLC, J.P. Morgan Securities LLC, RBC Capital Markets, LLC and Scotia Capital (USA) Inc.
Co-managers:	BMO Capital Markets Corp., BofA Securities, Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, MUFG and U.S. Bancorp Investments, Inc.
Coupon:	2.5%
Price:	99.658
Yield:	2.539%
Spread:	Treasuries plus 185 bps
Call features:	Make-whole call before March 15, 2030 at greater of par and Treasuries plus 30 bps; thereafter at par
Trade date:	June 12
Settlement date:	June 17
Ratings:	Moody’s: Baa2
	S&P: BBB+
	Fitch: BBB+
Distribution:	SEC registered
Price guidance:	Treasuries plus 225 bps area

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