Business Context and Reporting Period
Company: Black Hills Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: December 18, 2008
Event: Entry into a Material Definitive Agreement regarding a credit facility extension.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It focuses on debt financing terms.
- Facility Amount: $383 million bridge acquisition facility.
- Upfront Fees: Approximately $5 million paid at closing.
- Initial Borrowing Rate: 5.8 percent.
- Interest Rate Structure (Eurodollar provision):
- 300 basis points over LIBOR through March 31, 2009.
- 350 basis points over LIBOR from April 1, 2009 through June 30, 2009.
- 400 basis points over LIBOR from July 1, 2009 through September 30, 2009.
- 450 basis points over LIBOR thereafter.
Material Changes
The primary material change is the extension of the termination date for the $383 million bridge acquisition facility.
- Original Termination Date: February 5, 2009.
- New Termination Date: December 29, 2009.
- Administrative Agent Change: Transfer from ABN AMRO Bank N.V. to The Royal Bank of Scotland PLC.
Outlook, Risks, and Management Commentary
Management issued a press release on December 18, 2008, announcing the "Bridge Extension." The filing indicates the company is maintaining liquidity for acquisition purposes by extending the facility term by approximately 10 months. The filing does not provide specific forward-looking guidance on earnings or operational risks beyond the terms of the credit agreement.
Investor Verification Checklist
- Verify the total outstanding balance on the $383 million bridge facility to assess immediate liquidity needs.
- Confirm the impact of the $5 million closing fee on current period expenses.
- Monitor the scheduled increase in interest rate margins (basis points over LIBOR) effective April 1, 2009, and subsequent dates.
- Review the status of the acquisition(s) intended to be funded by this bridge facility to determine if permanent financing is secured before the new December 2009 deadline.