Business Context and Reporting Period
This Form 8-K was filed by Black Hills Corporation on May 27, 2009. The report details a material definitive agreement entered into by the registrant's subsidiary, Enserco Energy Inc. ("Enserco"), regarding its credit facilities.
Key Financial Metrics
The filing focuses on debt capacity and liquidity rather than operating performance metrics.
- Credit Facility: Third Amended and Restated Credit Agreement dated May 7, 2009.
- New Commitments: $60 million in subscribed commitments added via Joinder Agreements.
- Total Capacity: The additions bring the total subscribed commitments to the maximum line of $300 million.
- New Lenders: Calyon, RZB Finance LLC, and Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. ("Rabobank Nederland").
- Administrative Agent: Fortis Capital Corp.
Material Changes
The primary material change is the expansion of Enserco's borrowing capacity. The subsidiary executed Joinder Agreements to its existing credit facility, increasing the pool of subscribed lenders and confirming the full utilization of the $300 million maximum line.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance, management commentary on future outlook, or a discussion of risks and contingencies beyond the creation of the direct financial obligation noted in Item 2.03. The document serves strictly to disclose the entry into the material definitive agreement.
Investor Verification Checklist
- Verify the terms and interest rates associated with the $60 million in new commitments.
- Confirm the current utilization rate of the $300 million credit facility.
- Review the full text of the Third Amended and Restated Credit Agreement for covenants and maturity dates.
- Assess the creditworthiness of the new lenders (Calyon, RZB Finance, Rabobank) in the context of the 2009 financial environment.