Rapid City, S.D.-based Black Hill, an energy and communications company, has closed a $400 million revolving credit, after initially requesting $300 million. The credit facility is the largest financing in the company's history, said Dale Jahr, director of investor relations. Previously Black Hill had a couple of short-term credit facilities that it was looking to extend or renew as the old lines approached maturity. These lines totaled $290 million, but Black Hills is in a cycle of growth that requires more medium-term credit, hence the adoption of a $200 million, three-year tranche, in addition to a $200 million, 364-day facility. The facility was oversubscribed beyond $400 million, said Jahr, and Black Hills decided to increase the initial requested amount.
Lead banks ABN AMRO, U.S. Bank, and Union Bank of California arranged the credit facility. Union Bank was new to the company, but of the 10 other banks participating, seven or so had previous relationships with Black Hills, including ABN and U.S. Bank, Jahr noted. The interest rate is floating, said Jahr, though he declined to disclose pricing on the new or old lines. He added, the treasury department of his company is considering other forms of financing and instruments, though he would not to elaborate.
Black Hills is split into three business groups. Black Hills Energy Ventures, which generates energy and produces and markets natural gas, oil and coal; Black Hills Power, an electric utility: Black Hills FiberCom, a broadband communications company offering bundled telephone, high speed Internet and cable entertainment services.