Otter Tail gets $150 million unsecured revolver at Libor plus 175 bps

By Sara Rosenberg

New York, Nov. 2 - Otter Tail Corp. closed on a $150 million five-year unsecured revolving credit facility that is priced at Libor plus 175 basis points with a 27.5 bps unused fee, according to an 8-K filed with the Securities and Exchange Commission on Friday.

Pricing can range from Libor plus 125 bps to 250 bps and the unused fee can range from 17.5 bps to 45 bps based on ratings.

There is a $100 million accordion feature.

In addition, Otter Tail Power Co, a wholly owned subsidiary of the company, closed on a new $170 million five-year unsecured revolving credit facility that is priced at Libor plus 125 bps with a 17.5 bps unused fee.

Pricing can range from Libor plus 100 bps to 175 bps and the unused fee can range from 10 bps to 27.5 bps based on ratings.

There is an $80 million accordion feature.

U.S. Bank, Bank of America Merrill Lynch and J.P. Morgan Securities LLC acted as the joint lead arrangers and bookrunners on the deals that were completed on Oct. 29.

Financial covenants under the two revolvers include an interest-bearing debt to total capitalization ratio of 0.60 to 1.00 and an interest and dividend coverage ratio of 1.50 to 1.00.

Proceeds from the revolvers were used to refinance debt and are available for general corporate purposes.

Otter Tail is a Fergus Falls, Minn.-based company that operates in six segments: electric, plastics, manufacturing, health services, food ingredient processing and other business operations.

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