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Diversified US energy company Black Hills Corporation has upsized its existing revolving credit facility to $750 million from $500 million and closed a new $500 million unsecured term loan. Proceeds of the term loan will be used to repay existing corporate debt and fund expansion, while the revolver is essentially a working capital facility.
The amended and restated revolving credit has a five-year term expiring 9 August 2021, with two one-year extension options. The facility also has an accordion option to expand the borrowing by a further $250 million if required. Pricing on the revolver is unchanged at a spread of 112.5bp 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 three-year term with a maturity date of 9 August 2019. The cost of borrowing under the loan is based on Libor plus a margin based on the company’s credit rating. The margin is currently 95bp per annum.
Lead arrangers and bookrunners on both loans are JP Morgan Chase Bank, US Bank, MUFG Union Bank and Wells Fargo Securities.