Otter Tail and subsidiary amend and restate revolving agreements

By Mary-Katherine Stinson

Lexington, Ky., Nov. 1 – Otter Tail Corp. and its wholly owned subsidiary Otter Tail Power Co. amended and restated their credit agreements on Oct. 31, according to an 8-K filed with the Securities and Exchange Commission.

Otter Tail entered a fifth amended and restated credit agreement providing a revolving credit facility with a $170 million line of credit with outstanding letters of credit not to exceed $40 million at any time.

The line of credit may be increased to $290 million subject to certain terms and conditions.

Interest is between SOFR plus 112.5 basis points and 200 bps. The commitment fee is between 12.5 bps and 35 bps.

Otter Tail Power entered a fourth amended and restated credit agreement providing a revolving credit facility with a $170 million line of credit with outstanding letters of credit not to exceed $50 million at any time.

The line of credit may be increased to $250 million subject to certain terms and conditions.

Interest is between SOFR plus 100 bps and 175 bps. The commitment fee is between 10 bps and 27.5 bps.

Both agreements expire Oct. 29, 2027.

U.S. Bank NA is the administrative agent and sole bookrunner for both agreements.

U.S. Bank NA, BofA Securities, Inc., KeyBanc Capital Markets Inc. and Wells Fargo Securities LLC are the joint lead arrangers for both agreements.

KeyBanc Capital Markets Inc. is the syndication agent for the Otter Tail Corp. agreement. BofA Securities, Inc. and Wells Fargo Bank, NA are the co-documentation agents for the Otter Tail Corp. agreement.

Bank of America, NA is the syndication agent for the Otter Tail Power agreement. KeyBanc Capital Markets Inc. and Wells Fargo Bank, NA are the co-documentation agents for the Otter Tail Power agreement.

In both cases, the agreements amend and restate previous credit agreements dated as of Sept. 30, 2021, which were set to expire on Sept. 30, 2026.

As of Oct. 31, no amounts were outstanding under the Otter Tail credit agreement, nor was there any amount outstanding under the prior Otter Tail credit agreement. There are $9.6 million of outstanding letters of credit under the Otter Tail Power agreement.

Otter Tail is a Fergus Falls, Minn.-based electric utility company.

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