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RAPID CITY, S.D. - Black Hills Corp. (NYSE:BKH) has priced a registered public debt offering of $450 million in 4.550% senior unsecured notes due January 31, 2031, according to a press release issued Thursday. According to InvestingPro data, the company currently maintains a total debt of $4.37 billion, with short-term obligations exceeding liquid assets.
The offering is expected to close on October 2, 2025, subject to customary closing conditions. The utility company plans to use the net proceeds to repay or redeem all $300 million of its outstanding 3.950% notes due January 15, 2026. Any remaining proceeds may be directed toward general corporate purposes.
Black Hills Corp provides natural gas and electric utility services to approximately 1.35 million customers across eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. The utility company has demonstrated remarkable shareholder commitment, having raised its dividend for 54 consecutive years, as highlighted by InvestingPro analysis.
The notes are being offered through a prospectus supplement and base prospectus previously filed with the Securities and Exchange Commission.
The announcement comes as part of the company’s ongoing debt management strategy. The transaction represents a refinancing of existing debt with a new maturity extending to 2031.
This offering is being made available through J.P. Morgan Securities LLC and BofA Securities, Inc., according to the company statement. Based on InvestingPro’s Fair Value analysis, the stock currently appears to be trading above its Fair Value, with additional insights available in the comprehensive Pro Research Report.
In other recent news, Black Hills Corporation reported its Q2 2025 earnings, meeting earnings per share (EPS) expectations and surpassing revenue forecasts. The company achieved an EPS of $0.38, aligning with projections, while revenue reached $439 million, exceeding the anticipated $412.68 million. In a significant development, Black Hills Corp announced an all-stock merger with NorthWestern Energy valued at approximately $15.4 billion. This merger, unanimously approved by both companies’ boards, will create a regional regulated utility with a combined market capitalization of about $7.8 billion. Following the merger announcement, BofA Securities upgraded Black Hills’ stock from Underperform to Neutral, citing the merger outlook as a factor. Additionally, BMO Capital has reiterated its Outperform rating for Black Hills, focusing on the company’s Large Power Contract Service tariff. These recent developments highlight the dynamic changes and strategic moves involving Black Hills Corporation.
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