NorthWestern to repay $14.4 million of secured debt

New York, Dec. 21 - NorthWestern Corp. said it plans to repay $14.4 million of debt by the end of the year using early redemption provisions.

Covered by the action will be $13 million of 7¼% Montana senior secured term notes due March 3, 2008 and $1.446 million of 8.95% Montana first mortgage bonds due Jan. 1, 2022.

After the repayment, the Sioux Falls, S.D., energy and gas provider will have $835.5 million of secured debt outstanding.

Funding will come from $25 million of proceeds from recent asset sales including $15 million received from the sale of bank debt issued by Cornerstone Propane Partners LP under a claims settlement and $10 million in partial payment of inter-company obligations from the sale of business locations of Blue Dot Services Inc.

"These early debt redemptions are part of the company's strategy to further improve our balance sheet and reduce interest expenses as we work to obtain an investment-grade rating," said Brian Bird, NorthWestern's chief financial officer, in a news release.

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