The company said that the loan provides it with additional liquidity, at attractive terms, to manage financing needs related to the construction of its two gas-fired power generation projects in Colorado.
The cost of borrowing under the loan is based on a spread of 137.5 basis points over LIBOR.
Black Hills said it intends to use the term loan proceeds to reduce borrowings under its revolving credit facility.
Black Hills is a diversified energy company which serves 754,000 natural gas and electric utility customers in Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming.
The company’s non-regulated businesses generate wholesale electricity, produce natural gas, oil and coal, and market energy.
