Filed Pursuant to Rule 433
Registration No. 333-150669
Pricing Term Sheet
May 11, 2009
Black Hills Corporation
$250,000,000
9% Senior Notes due 2014
The following information supplements the Preliminary Prospectus Supplement, dated May11, 2009, filed pursuant to Rule 424, Registration Statement No. 333-150669.
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Issuer: |
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Black Hills Corporation |
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Title of securities: |
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9% Senior Notes due 2014 |
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Aggregate principal amount offered: |
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$250,000,000 principal amount |
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Principal amount per note: |
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$2000 x $1000 |
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Price to public: |
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100% of principal amount |
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Gross Proceeds: |
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$250,000,000 |
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Underwriters’ discount: |
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.600% |
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Annual interest rate: |
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9% per annum |
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Yield to Maturity: |
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9% |
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Benchmark: |
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1.875% UST due April 30, 2014 |
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Benchmark Yield: |
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2.021% |
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Ratings: |
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Baa3; BBB-; BBB(1) |
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Interest payment dates: |
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May 15 and November 15 of each year, commencing November 15, 2009 |
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Spread to Treasury: |
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697.9 bp |
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Maturity: |
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May 15, 2014 |
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Redemption: |
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Callable at any time at the greater of: i) the price equal to the principal amount plus accrued and unpaid interest; or ii) at Treasury Rate plus 50 bp. |
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Ranking: |
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Senior |
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Joint Book-Running Managers: |
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Credit Suisse
Securities (USA) LLC |
(1) These securities ratings have been provided by Moody’s, S&P and Fitch, respectively. None of these ratings is a recommendation to buy, sell or hold these securities. Each rating may be subject to revision or withdrawal at any time, and should be evaluated independently of any other rating.
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Senior Co-Managers: |
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BMO Nesbitt Burns Inc. |
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Co-Managers: |
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U.S. Bancorp
Investments, Inc. |
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Trade date: |
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May 11, 2009 |
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Settlement date (T+3): |
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May 14, 2009 |
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CUSIP: |
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029113 AF6 |
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Ratio of earnings to fixed charges: |
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In 2008, earnings were insufficient to cover fixed charges by $85.3 million. See Page S-8 of the Preliminary Prospectus Supplement, filed on May 11, 2009 (Registration No. 333-150669) for a definition of “earnings” and “fixed charges.” |
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Sale of 25% Interest in Wygen III: |
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See Page 62 of the Form 10-Q filed on May 11, 2009: On April 9, 2009, we received proceeds of $30.2 million for the sale of 25% of the Wygen III plant to MDU. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Credit Suisse Securities (USA) LLC toll free at 1-800-221-1037 or RBS Securities Inc. toll free at 1-866-884-2071.