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OTTR > SEC Filings for OTTR > Form 8-K on 2-Dec-2013All Recent SEC Filings

Show all filings for OTTER TAIL CORP

Form 8-K for OTTER TAIL CORP


2-Dec-2013

Other Events


Item 8.01 Other Events

On November 6, and 25, 2013, Otter Tail Corporation, a Minnesota corporation (the "Company"), purchased, in two separate transactions, $12,933,000 and $34,737,000, respectively, of its outstanding $100,000,000 9.000% Notes due December 15, 2016 (the "Notes") issued pursuant to the indenture (for unsecured debt securities) dated as of November 1, 1997, as amended by a First Supplemental Indenture dated as of July 1, 2009. The purchased Notes ("Purchased Notes") were subsequently retired and are no longer outstanding.

The price paid by the Company for the Purchased Notes was $59,404,489, which includes the principal amount of the Purchased Notes, plus accrued interest of $1,845,368 through the respective purchase dates and a negotiated premium of $9,889,121 (which is less than the premium the Company would have been required to pay to redeem them under the terms of the Notes). The Company used cash on hand to fund the purchase of the Purchased Notes. The amount of the debt retired as a result of these transactions is approximately equivalent to the amount of debt that was associated with the operating companies that the Company has divested over the last two years. The retirement of the Purchased Notes further strengthens the Company's capital structure and reduces pre-tax interest expense by approximately $13 million over the remaining life of the Purchased Notes.

In connection with the retirement of the $47,670,000 in Purchased Notes, the Company is revising its 2013 earnings per share guidance range to reflect the charge to be incurred for the debt retirement premium and the remaining unamortized debt issuance expense related to the Purchased Notes.

        Previous 2013 Earnings Per Share                  Updated 2013 Earnings Per Share
                 Guidance Range                                   Guidance Range

                                    Low    High                                  Low    High
Electric                           $1.02   $1.04     Electric                   $1.02   $1.04
Manufacturing                      $0.30   $0.33     Manufacturing              $0.30   $0.33
Construction                       $0.03   $0.05     Construction               $0.03   $0.05
Plastics                           $0.35   $0.37     Plastics                   $0.35   $0.37
                                                     Corporate - Recurring
Corporate - Recurring Costs       ($0.32) ($0.29)    Costs                     ($0.32) ($0.29)
 Subtotal                          $1.38   $1.50      Subtotal                  $1.38   $1.50
                                                     Corporate - Debt
Corporate - Debt Retirement Costs    -       -       Retirement Costs          ($0.17) ($0.17)
                                                      Total - Continuing
 Total - Continuing Operations     $1.38   $1.50     Operations                 $1.21   $1.33

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