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Black Hills Corp. Upsizes Revolving Credit Facility to $750 Million and Closes $500 Million Term Loan

Tue 9th August, 2016 10:00pm
Black Hills Corp. Upsizes Revolving Credit Facility to $750 Million and Closes $500 Million Term Loan

RAPID CITY, S.D. - Aug. 9, 2016 - Black Hills Corp. (NYSE: BKH) today announced that it has upsized its revolving credit facility to $750 million from $500 million and closed a $500 million unsecured term loan.

The amended and restated corporate revolving credit facility has a five-year term expiring Aug. 9, 2021, with two one-year extension options. The facility also has an accordion feature that allows Black Hills to increase the total commitment under the facility up to $1 billion under certain conditions. The facility will be used to fund working capital and for general corporate purposes. The cost of borrowing under the new facility is based on the company's credit rating and is unchanged at a spread of 112.5 basis points over LIBOR. Current borrowings under the amended facility are $75 million with $26 million of letters of credit issued.

The new $500 million term loan has a 3-year term with a maturity date of Aug. 9, 2019. The cost of borrowing under the loan is based on LIBOR plus a spread based on the company's credit rating, which is currently 95 basis points per annum. Proceeds of the term loan will be used to repay existing corporate debt.

"We are pleased with the increased commitment from our banks in our credit facility and term loan," said Richard W. Kinzley, senior vice president and chief financial officer of Black Hills Corp. "The upsized facility and term loan will continue to provide flexible and low-cost funding in support of our growth initiatives."

U.S. Bank N.A. is the administrative agent for the Black Hills revolving credit facility. U.S. Bank N.A., JP Morgan Chase Bank, N.A., MUFG Union Bank, N.A. and Wells Fargo Securities, LLC are co-lead arrangers and co-book runners.

JP Morgan Chase Bank, N.A., is the administrative agent for the Black Hills term loan. U.S. Bank N.A., MUFG Union Bank, N.A. and Wells Fargo Securities, LLC are co-lead arrangers and co-book runners.

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Investor Relations
Jerome E. Nichols
605-721-1171
jerome.nichols@blackhillscorp.com

24-Hour Media Relations Line
866-243-9002

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer focused, growth-oriented, vertically-integrated 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 1.2 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The company also generates wholesale electricity and produces natural gas, oil and coal. More information is available at www.blackhillscorp.com.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS
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, including statements that the credit facility provides flexible and low-cost funding in support of our growth initiatives, are forward-looking statements. 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, including the factors discussed above, the risk factors described in Item 1A of Part I of our 2015 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

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