Rapid City, South Dakota — Nov. 1, 2018 — Black Hills Corp. (NYSE: 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,
“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 benefited 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.