Filed Pursuant to Rule 433
Registration No. 333-150669-01
Pricing Term Sheet
October 22, 2009
Black Hills Power, Inc.
$180,000,000
First Mortgage Bonds, 6.125% Series AF due November 1, 2039
The following information supplements the Preliminary Prospectus Supplement dated October 22, 2009, filed pursuant to Rule 424, Registration Statement No. 333-150669-01.
Issuer: | Black Hills Power, Inc. |
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Title of securities: | First Mortgage Bonds, 6.125% Series AF due 2039 |
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Ratings: | A3; BBB; A-(1) |
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Aggregate principal amount offered: | $180,000,000 principal amount |
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Maturity: | November 1, 2039 |
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Interest payment dates: | May 1 and November 1 of each year, commencing May 1, 2010 |
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Record dates: | April 15 and October 15 of each year |
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Principal amount per note: | $100,000 x $1,000 |
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Benchmark: | UST 4.25% due 5/2039 |
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Benchmark Price | 99-29+ |
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Benchmark yield: | 4.255% |
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Reoffer Spread | +187.5 bps |
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Reoffer Yield | 6.130% |
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Coupon | 6.125% per annum |
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Price to public: | 99.931% of principal amount |
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Gross proceeds: | $179,875,800 |
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Underwriters’ discount: | 0.875% |
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Net proceeds, after underwriters’ discount, to issuer: | $178,300,800 |
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Optional redemption: | Callable at any time at the greater of i) the price equal to the principal amount plus accrued and unpaid interest and ii) the Treasury Rate plus 25 bps. |
(1) These securities ratings have been provided by Moody’s, S&P and Fitch. These ratings are not 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.
Joint Book-Running Managers: | RBC Capital Markets Corporation RBS Securities Inc. Scotia Capital (USA) Inc. |
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Senior Co-Managers: | BMO Capital Markets Corp. Mitsubishi UFJ Securities (USA), Inc. |
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Co-Managers: | The Williams Capital Group, L.P. U.S. Bancorp Investments, Inc. |
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Trade date: | October 22, 2009 |
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Settlement date (T+3): | October 27, 2009 |
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CUSIP: | 092114 AB3 |
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ISIN: | US092114AB31 |
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 website 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 RBC Capital Markets Corporation toll free at 1-866-375-6829, RBS Securities Inc. toll free at 1-866-884-2071 or Scotia Capital (USA) Inc. toll free at 1-800-372-3930.
