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Section 1: FWP (FINAL TERM SHEET - 4.350% NOTES DUE 2033)

 

Filed Pursuant to Rule 433
Registration No. 333-219705

 

Pricing Term Sheet
August 14, 2018

 

Black Hills Corporation

 

This communication should be read in conjunction with the preliminary prospectus supplement dated August 13, 2018 and the accompanying base prospectus. The information in this communication supersedes the information in the preliminary prospectus supplement and the accompanying base prospectus to the extent inconsistent with the information in the preliminary prospectus supplement and the accompanying base prospectus. In all other respects, this communication is qualified in its entirety by reference to the preliminary prospectus supplement and the accompanying base prospectus.

 

$400,000,000 4.350% Notes due 2033

 

Issuer:

 

Black Hills Corporation

 

 

 

Title of securities:

 

4.350% Notes due 2033

 

 

 

Aggregate principal amount offered:

 

$400,000,000 principal amount

 

 

 

Principal amount per note:

 

$2,000 x $1,000

 

 

 

Initial price to public:

 

99.543% of principal amount

 

 

 

Gross proceeds:

 

$398,172,000

 

 

 

Underwriters’ discount:

 

0.850%

 

 

 

Annual interest rate:

 

4.350% per annum

 

 

 

Yield to maturity:

 

4.393%

 

 

 

Benchmark:

 

2.875% due August 15, 2028

 

 

 

Benchmark yield:

 

2.893%

 

 

 

Spread to treasury:

 

+150 bps

 

 

 

Expected ratings (outlook)*:

 

Moody’s: Baa2 (Stable) / S&P: BBB+ (Stable) / Fitch: BBB+ (Stable)

 

 

 

Interest payment dates:

 

May 1 and November 1 of each year, commencing November 1, 2018

 



 

Stated maturity:

 

May 1, 2033

 

 

 

Redemption:

 

 

 

 

 

Make-whole call:

 

Callable at the greater of par and the make-whole (Treasury Rate plus 25 bps) at any time before February 1, 2033, as described under the heading “Description of the Notes—Redemption” in the preliminary prospectus supplement.

 

 

 

Par call:

 

Callable at par at any time on or after February 1, 2033, as described under the heading “Description of the Notes—Redemption” in the preliminary prospectus supplement.

 

 

 

Ranking:

 

Senior Unsecured

 

 

 

Joint Book-Running Managers:

 

J.P. Morgan Securities LLC
Morgan Stanley & Co. LLC
Wells Fargo Securities, LLC

 

 

 

Passive Book-Running Manager:

 

Credit Suisse Securities (USA) LLC

 

 

 

Senior Co-Managers:

 

Merrill Lynch, Pierce, Fenner & Smith
                     Incorporated

MUFG Securities Americas Inc.
RBC Capital Markets, LLC
U.S. Bancorp Investments, Inc.

 

 

 

Co-Managers:

 

BMO Capital Markets Corp.
Scotia Capital (USA) Inc.

 

 

 

Trade date:

 

August 14, 2018

 

 

 

Settlement date (T+3)**:

 

August 17, 2018

 

 

 

CUSIP / ISIN:

 

092113AQ2/US092113AQ27

 

Selling Securityholders

 

Principal Amount of the Notes
Beneficially Owned and Offered

 

J.P. Morgan Securities LLC

 

$

74,750,000

 

Morgan Stanley & Co. LLC

 

59,800,000

 

Wells Fargo Securities, LLC

 

59,800,000

 

Credit Suisse Securities (USA) LLC

 

17,940,000

 

Merrill Lynch, Pierce, Fenner & Smith
Incorporated

 

17,940,000

 

MUFG Securities Americas Inc.

 

17,940,000

 

RBC Capital Markets, LLC

 

17,940,000

 

U.S. Bancorp Investments, Inc.

 

17,940,000

 

BMO Capital Markets Corp.

 

7,475,000

 

Scotia Capital (USA) Inc.

 

7,475,000

 

Total

 

$

299,000,000

 

 

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* These securities ratings have been provided by Moody’s, S&P and Fitch, respectively. None of these ratings is a recommendation to buy, sell or hold these securities. Each rating may be subject to revision or withdrawal at any time, and should be evaluated independently of any other rating.

 

** It is expected that delivery of the notes will be made against payment thereof on or about August 17, 2018, which will be the third business day following the date of the pricing of the notes (such settlement being referred to as “T+3”). Under Rule 15c6-1 under the Exchange Act, trades in the secondary market are generally required to settle in two business days, unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade notes on the date of pricing will be required, by virtue of the fact that the notes will initially settle in T+3, to specify an alternate settlement arrangement at the time of any such trade to prevent a failed settlement.

 

The issuer has filed a registration statement (including a prospectus and related preliminary prospectus supplement) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus and preliminary prospectus supplement in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC collect at 1-212-834-9622, Morgan Stanley & Co. LLC at 1-866-718-1649, or Wells Fargo Securities, LLC at 1-800-645-3751.

 

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

 

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