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Get filing alertsOtter Tail Power closes $70M senior note offering at 6.04% to fund capex and refinance debt
Filed June 5, 2026 · Period ending June 4, 2026 · ~1 min read
Key Changes
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Otter Tail Power issued $70 million of 6.04% senior unsecured notes due 2056, completing the second tranche of a $170 million offering. Proceeds will fund capital expenditures, refinance existing debt, and support general corporate purposes.
Item 2.03 — Creation of a Direct Financial Obligation verify on EDGAR → -
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The note agreement caps interest-bearing debt at 65% of total capitalization and priority indebtedness at 20%, both measured quarterly. These covenants limit OTP's ability to take on additional leverage.
Item 2.03 — Creation of a Direct Financial Obligation verify on EDGAR → -
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OTP can prepay the notes at par plus accrued interest and a make-whole premium, waived for Series 2026B after December 2055. A change of control triggers a mandatory prepayment offer at par plus accrued interest.
Item 2.03 — Creation of a Direct Financial Obligation verify on EDGAR →
Summary
Otter Tail Power Company completed the second tranche of its senior note offering on June 4, 2026, issuing $70 million of 6.04% Series 2026B Notes due 2056. This follows the March 2026 issuance of $100 million in Series 2026A Notes, bringing the total offering to $170 million.
The proceeds will fund capital expenditures, refinance existing indebtedness, and support general corporate purposes—standard uses for a regulated utility managing its capital structure. The note agreement imposes financial covenants that cap interest-bearing debt at 65% of total capitalization and priority indebtedness at 20%, both measured quarterly.
These limits are typical for utility debt and constrain OTP's ability to lever up significantly, though they provide bondholders with structural protection. The 6.04% coupon reflects current market conditions for 30-year utility paper. For retail holders of Otter Tail Corp, this is a routine financing event that modestly increases the utility subsidiary's long-term debt but does not materially alter the company's financial profile or risk posture.
Section-by-Section Diff
Event · Item 2.03 — Creation of a Direct Financial Obligation
Item 2.03 — Creation of a Direct Financial Obligation filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
On June 4, 2026, OTP issued the Series 2026B Notes pursuant to the Note Purchase Agreement for aggregate proceeds of $70,000,000. OTP will use the proceeds from the issuance to fund capital expenditures, refinance existing indebtedness, and for general corporate purposes.
Otter Tail Power Company completed the second tranche of its previously announced $170 million senior note offering, issuing $70 million of 6.04% Series 2026B Senior Unsecured Notes due June 4, 2056. The proceeds will fund capital expenditures, refinance existing debt, and support general corporate purposes. This follows the March 2026 issuance of $100 million in Series 2026A Notes.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jun 21, 2026 · How we verify