Knife River to price $400 million eight-year notes on Tuesday; initial talk 8%-8¼%

By Paul A. Harris

Portland, Ore., April 10 – Knife River Holding Co., a wholly owned subsidiary of MDU Resources Group, Inc., plans to sell $400 of senior notes due 2031 (Ba3/BB) on Tuesday, according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial talk of 8% to 8¼%.

The Rule 144A and Regulation S eight-year notes come with three years of call protection.

J.P. Morgan Securities LLC, BofA Securities Inc., MUFG Securities Americas Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Proceeds will be used to help fund MDU Resources' spinoff of Knife River Corp., a supplier of crushed stone, sand, gravel and related construction materials. The new parent will be Knife River Holding.

Bismarck, N.D.-based MDU Resources Group provides products and services through its regulated energy delivery and construction materials and services businesses.

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