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Otter Tail Power issues $100M of senior unsecured notes

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Otter Tail Power issues $100M of senior unsecured notes

Otter Tail Power Co. on Oct. 10 issued $100 million of senior unsecured notes. These consist of $10 million of its 3.07% series 2019A notes due Oct. 10, 2029; $26 million of its 3.52% series 2019B notes due Oct. 10, 2039; and $64 million of its 3.82% series 2019C notes due Oct. 10, 2049.

The Otter Tail Corp. subsidiary used a portion of the $100 million proceeds from the issuance to repay $69.9 million of existing debt under its revolving credit facility. It also plans to use the remaining amount from the proceeds for capital expenditures and general corporate purposes.

The senior unsecured notes were issued in a private placement, pursuant to a previously announced note purchase agreement.

Under the agreement, Otter Tail Power also plans to issue $10 million of the company's 3.22% series 2020A notes due Feb. 25, 2030; $40 million of its 3.22% series 2020B notes due Aug. 20, 2030; $10 million of its 3.62% series 2020C notes due Feb. 25, 2040; and $15 million of its 3.92% series 2020D notes due Feb. 25, 2050.

The series 2020A, 2020C and 2020D notes are expected to be issued Feb. 25, 2020, while the series 2020B notes are expected to be issued Aug. 20, 2020.