Black Hills Corp. Announces Pricing of $700 Million Senior Notes Offering

RAPID CITY, S.D. - Aug. 10, 2016 - Black Hills Corp. (NYSE: BKH) today announced the pricing of a registered public debt offering of $700 million in senior unsecured notes. The debt offering consists of $400 million aggregate principal amount of 3.150% senior notes due 2027, priced at 99.949% of their principal amount, and $300 million aggregate principal amount of 4.200% senior notes due 2046, priced at 99.455% of their principal amount. Black Hills expects the offering to close on Aug. 19, 2016, subject to customary closing conditions.

The company plans to use the net proceeds from the debt offering, together with the proceeds from recent bank loan transactions, for the following purposes:

• to repay entire $260 million principal amount outstanding of our term loan due April 12, 2017;
• to repay entire $340 million principal amount outstanding of our term loan due June 30, 2017;
• to repay entire $325 million principal amount outstanding of our 5.90% notes due April 1, 2017;
• to repay entire $95 million principal amount outstanding of our 3.98% notes due Sept. 29, 2019;
• to terminate certain interest rate swaps; and
• to pay down a portion of our term loan due Aug. 9, 2019.

J.P. Morgan Securities LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments, Inc. are serving as joint book-running managers for the offering.

The offering is being made pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission, and the offering will be made only by means of a prospectus supplement for such offering and an accompanying prospectus. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained by writing or calling the joint book-running managers for the offering as follows: J.P. Morgan Securities LLC, Attention: Investment Grade Syndicate Desk, 383 Madison Ave., New York, NY 10179, Telephone: (212) 834-4533; MUFG Securities Americas Inc. at 1221 Avenue of the Americas, 6th Floor, New York, NY 10020-1001 or by calling toll free 1-877-649-6848; or from Scotia Capital (USA) Inc. at 250 Vesey Street, New York, NY 10281, or by calling toll free 1-800-372-3930. An electronic copy of the prospectus supplement is available on the website of the Securities and Exchange Commission at www.sec.gov.    

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any state or jurisdiction in which it is unlawful to make an offer, solicitation or sale.

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

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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.