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NorthWestern defers distributions on trust preferreds
By Carlise Newman
Chicago, May 23 - NorthWestern Corp. said it will defer cash distributions on its trust preferred securities.
NorthWestern has five series of securities affected by the action: those issued by NWPS Capital Financing I; NorthWestern Capital Financing I; NorthWestern Capital Financing II; NorthWestern Capital Financing III; and Montana Power Capital I.
NorthWestern has the right to defer interest payments on the subordinated debentures underlying the trust preferreds for up to 20 quarters unless a default under occurs. During the deferment period, distributions will continue to accumulate on the trust preferred securities together with interest on the unpaid distributions.
The Sioux Falls, S.D. electricity and natural gas provider previously announced that it is implementing a turnaround plan to reduce the company's debt by applying net proceeds from the sale of non-core businesses and assets. The deferral of cash distributions on the trust preferred securities builds upon the company's actions to preserve cash and pay down debt, NorthWestern said.
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