Black Hills Retires Remaining $105MM on Bridge Acquisition Loan

Black Hills Corp.

Black Hills has paid off the remaining $105 million of borrowings on its bridge acquisition facility. The financing was originally obtained to purchase four natural gas utilities and one electric utility from Aquila in a transaction that closed on July 14, 2008.

"We are pleased to retire the bridge facility ahead of schedule. We have adequate liquidity of approximately $300 million to support our businesses, and as reported during our first quarter investor webcast, we plan to obtain additional long-term debt financing by year-end to support our growth initiatives," said David R. Emery, chairman, president and chief executive officer of Black Hills Corp.

On Dec. 18, 2008, Black Hills extended its $383 million bridge acquisition facility from a Feb. 5, 2009 maturity date to a Dec.29, 2009 maturity date to provide additional flexibility as the company pursued long-term replacement financing. In April 2009, the company used proceeds of $30.2 million from the sale of a 25 percent ownership interest in its Wygen III power plant to pay down a portion of the facility.

Last month, the company announced it had completed a $250 million public long-term bond offering and that the net proceeds were used to reduce the acquisition facility debt to approximately $105 million.