Business Context and Reporting Period
Company: Black Hills Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: December 15, 2010
Event: Entry into a Material Definitive Agreement (Credit Agreement)
Key Financial Metrics
This filing reports a specific financing transaction rather than periodic financial performance metrics (revenue, profit, cash flow, or margins). The filing text does not provide a clear value for these operational metrics.
| Metric | Value |
|---|---|
| Term Loan Amount | $100 million |
| Loan Type | One-year unsecured single-draw term loan |
| Interest Rate Spread | 137.5 basis points over LIBOR |
| Maturity Date | December 14, 2011 |
| Administrative Agent | JPMorgan Chase Bank, N.A. |
Material Changes
The primary material change is the restructuring of the company's debt profile. The proceeds from the new $100 million Term Loan were utilized to reduce borrowings under the Registrant's existing revolving credit facility.
Outlook, Risks, and Management Commentary
Management Commentary: The company executed this agreement to optimize its capital structure by converting revolving credit usage into a fixed-term obligation.
Risks/Contingencies: The filing does not explicitly detail new risks or contingencies beyond the standard obligations of the new debt instrument. The loan is unsecured.
Investor Verification Checklist
- Verify the impact of the $100 million term loan on the company's total debt load and interest expense coverage.
- Confirm the remaining availability under the revolving credit facility after the reduction.
- Review the full Credit Agreement (Exhibit 10) for covenants and prepayment terms.
- Monitor the maturity date of December 14, 2011, for refinancing requirements.