RAPID CITY, S.D. - Nov. 1, 2018 - Black Hills Corp. (BKH) today issued 6.37 million shares of its common stock related to the conversion of the equity units that were issued in November 2015 to partially fund the acquisition of SourceGas Holdings LLC. Gross proceeds from the transaction of approximately $299 million will be used to repay the $250 million Senior Notes due January 2019 and short-term debt.
"The planned issuance of common stock today marks the completion of the successful financing of the SourceGas transaction," said Rich Kinzley, senior vice president and chief financial officer. "Our investors and customers have benefitted from the SourceGas acquisition and the significant value we have created over the last three years."
The common stock issued today is in settlement of the stock purchase contracts underlying the 5.98 million equity units issued at $50 per unit. The equity units converted to 6.37 million shares of common stock at a rate of 1.0655 shares per unit. The purchase of the common shares was funded by proceeds from the successful remarketing on August 14, 2018, of the junior subordinated notes that constituted a component of the units. Upon completion of today`s equity issuance, Black Hills has approximately 59.97 million shares of common stock outstanding.
Black Hills Corporation
Black Hills Corp. (BKH) is a customer focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.25 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com, www.blackhillscorp.com/corporateresponsibility and www.blackhillsenergy.com.
Jerome E. Nichols
24-Hour Media Relations Line
Caution Regarding Forward Looking Statement
This news release includes "forward-looking statements" as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward looking statements. This includes our ability to repay indebtedness in a timely manner. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2017 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.
New factors that could cause actual results to differ materially from those described in forward looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: Black Hills Corporation via GlobeNewswire