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4-Traders Homepage  >  Equities  >  Nasdaq  >  Otter Tail Corporation    OTTR

Delayed Quote. Delayed  - 11/20 10:00:00 pm
45.85 USD   -0.22%
11/16 OTTER TAIL CORP : OTTR) Files An 8-K Entry into a Material Definitiv..
11/14 OTTER TAIL CORP : ex-dividend day
11/02 OTTER TAIL : posts 3Q profit
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OTTER TAIL CORPORATION (NASDAQ:OTTR) Files An 8-K Entry into a Material Definitive Agreement

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11/16/2017 | 05:06pm CET

OTTER TAIL CORPORATION (NASDAQ:OTTR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.

On November 14, 2017, Otter Tail Power Company (the “Company”), a wholly owned subsidiary of Otter Tail Corporation (“OTC”), entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with the Purchasers named therein, to which the Company has agreed to issue to the Purchasers, in a private placement transaction, $100 million aggregate principal amount of the Company’s 4.07% Series 2018A Senior Unsecured Notes due February 7, 2048 (the “Notes”). The Notes are expected to be issued on February 7, 2018, subject to the satisfaction of certain customary conditions to closing.

The Note Purchase Agreement states that the Company may prepay all or any part of the Notes (in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding in the case of a partial prepayment) at 50% of the principal amount so prepaid, together with unpaid accrued interest and a make-whole amount; provided that if no default or event of default exists under the Note Purchase Agreement, any prepayment made by the Company of all of the Notes then outstanding on or after August 7, 2047 will be made without any make-whole amount. The Note Purchase Agreement also requires the Company to offer to prepay all outstanding Notes at 50% of the principal amount together with unpaid accrued interest in the event of a Change of Control (as defined in the Note Purchase Agreement) of the Company.

The Note Purchase Agreement contains a number of restrictions on the business of the Company that will be effective upon execution of the Note Purchase Agreement. These include restrictions on the Company’s abilities to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The Note Purchase Agreement also contains other negative covenants and events of default, as well as certain financial covenants. Specifically, the Company may not permit its Interest-bearing Debt (as defined in the Note Purchase Agreement) to exceed 60% of Total Capitalization (as defined in the Note Purchase Agreement), determined as of the end of each fiscal quarter. The Company is also restricted from allowing its Priority Indebtedness (as defined in the Note Purchase Agreement) to exceed 20% of Total Capitalization, determined as of the end of each fiscal quarter. The Note Purchase Agreement does not include provisions for the termination of the agreement or the acceleration of repayment of amounts outstanding due to changes in the Company’s credit ratings. The Note Purchase Agreement includes a “most favored lender” provision generally requiring that in the event the Company’s existing credit agreement or any renewal, extension or replacement thereof, at any time contains any financial covenant or other provision providing for limitations on interest expense and such a covenant is not contained in the Note Purchase Agreement under substantially similar terms or would be more beneficial to the holders of the Notes than any analogous provision contained in the Note Purchase Agreement (an “Additional Covenant”), then unless waived by the Required Holders (as defined in the Note Purchase Agreement), the Additional Covenant will be deemed to be incorporated into the Note Purchase Agreement. The Note Purchase Agreement also provides for the amendment, modification or deletion of an Additional Covenant if such Additional Covenant is amended or modified under or deleted from the credit agreement, provided that no default or event of default has occurred and is continuing.

The Company intends to use the proceeds of the Notes to refinance existing indebtedness under the Company’s revolving credit facilities.

The summary in this Item 1.01 of the material terms of the Note Purchase Agreement is qualified in its entirety by reference to the full text of the Note Purchase Agreement, a copy of which is filed as Exhibit 4.1 hereto and incorporated herein by reference.

JPMorgan Securities LLC (“JPMS”) and KeyBanc Capital Markets acted as placement agents (the “Agents”) in connection with the Notes. The Agents and certain of their affiliates have had, and may in the future have, investment banking and other commercial dealings with the Company and its other affiliates, for which the Agents or their affiliates have received and may in the future receive customary compensation. Such dealings have included the following:

(i)

JPMorgan Chase Bank, N.A. (“JPMorgan”), an affiliate of JPMS, and KeyBank National Association (”KeyBank”), an affiliate of KeyBanc Capital Markets, are parties to OTC’s Third Amended and Restated Credit Agreement, as amended as of October 31, 2017;

(ii)

JPMorgan and KeyBank are parties to the Company’s Second Amended and Restated Credit Agreement, as amended as of October 31, 2017;

(iii)

JPMorgan acted as administrative agent and JPMS acted as lead arranger and book runner in connection with a Term Loan Agreement with OTC entered into on February 5, 2016 for a $50 million unsecured two-year term loan;

(iv)

JPMS entered into a Distribution Agreement with OTC on May 11, 2015, to which OTC may offer and sell its common shares, par value $5.00 per share, from time to time through JPMS, as OTC’s distribution agent for the offer and sale of the shares, up to an aggregate sales price of $75,000,000;

(v)

KeyBank was OTC’s investment banker in connection with the dispositions of Aevenia, Inc. (closed February 28, 2015) and Foley Company (closed April 30, 2015); and

(vi)

JPMS acted as sole placement agent in connection with a note purchase agreement entered into on August 14, 2013 for the private placement of $60 million aggregate principal amount of the Company’s 4.68% Series A Senior Unsecured Notes due February 27, 2029 and $90 million aggregate principal amount of the Company’s 5.47% Series B Senior Unsecured Notes due February 27, 2044, both issued on February 27, 2014.

Item 1.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The information contained in Item 1.01 above regarding the Company’s entry into the Note Purchase Agreement is incorporated herein by reference.

Item 1.01 Financial Statements and Exhibits

(d)Exhibits

4.1 Note Purchase Agreement dated as of November 14, 2017 between Otter Tail Power Company and the Purchasers named therein.

Otter Tail Corp ExhibitEX-4.1 2 ex_100612.htm EXHIBIT 4.1 ex_100612.htm Exhibit 4.1 Conformed Version         Otter Tail Power Company         $100,…To view the full exhibit click here
About OTTER TAIL CORPORATION (NASDAQ:OTTR)
Otter Tail Corporation is a holding company. The Company, through its subsidiaries, operates through three segments: Electric, Manufacturing and Plastics. The Company’s subsidiaries own facilities and equipment used in the manufacture of producing polyvinyl chloride (PVC) pipe, thermoformed products, heavy metal fabricated products, metal parts stamping, fabricating, painting and contract machining. The Company, through its Electric segment, is engaged in the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by its subsidiary, Otter Tail Power Company (OTP). Its Manufacturing segment consists of businesses engaged in the activities, including contract machining, metal parts stamping, fabrication and painting, and production of material and handling trays and horticultural containers. The Company’s Plastics segment consists of businesses producing PVC pipe at plants in North Dakota and Arizona.

The post OTTER TAIL CORPORATION (NASDAQ:OTTR) Files An 8-K Entry into a Material Definitive Agreement appeared first on Market Exclusive.

© Market Exclusive 2017, source Market Exclusive

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Financials ($)
Sales 2017 856 M
EBIT 2017 -
Net income 2017 -
Debt 2017 -
Yield 2017 2,79%
P/E ratio 2017 -
P/E ratio 2018
Capi. / Sales 2017 2,12x
Capi. / Sales 2018 2,06x
Capitalization 1 818 M
Chart OTTER TAIL CORPORATION
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Otter Tail Corporation Technical Analysis Chart | OTTR | US6896481032 | 4-Traders
Technical analysis trends OTTER TAIL CORPORATION
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TrendsBullishBullishBullish
Income Statement Evolution
Consensus
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Mean consensus OUTPERFORM
Number of Analysts 3
Average target price 48,0 $
Spread / Average Target 4,5%
Managers
NameTitle
Charles S. MacFarlane President, Chief Executive Officer & Director
Nathan Ivey Partain Chairman
Kevin G. Moug Chief Financial Officer & Senior Vice President
Karen M. Bohn Independent Director
John D. Erickson Director
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