Filed Pursuant to Rule 433
Registration No. 333-150669

 

Pricing Term Sheet

July 13, 2010

 

Black Hills Corporation

 

$200,000,000

 

5.875% Senior Notes due 2020

 

The following information supplements the Preliminary Prospectus Supplement, dated July 13, 2010, filed pursuant to Rule 424, Registration Statement No. 333-150669.

 

Issuer:

 

Black Hills Corporation

Title of securities:

 

5.875% Senior Notes due 2020

Aggregate principal amount offered:

 

$200,000,000 principal amount

Principal amount per note:

 

$2000 x $1000

Price to public:

 

100.000% of principal amount

Gross Proceeds:

 

$200,000,000

Underwriters’ discount:

 

0.650%

Annual interest rate:

 

5.875% per annum

Yield to Maturity:

 

5.875%

Benchmark:

 

3.500% UST due May 15, 2020

Benchmark Yield:

 

3.103%

Ratings:

 

Baa3; BBB-; BBB(1)

Interest payment dates:

 

January 15 and July 15 of each year, commencing January 15, 2011

Spread to Treasury:

 

+277.2 bps

Maturity:

 

July 15, 2020

Redemption:

 

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 45 bps.

Ranking:

 

Senior Unsecured

 

(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.

 


 

Joint Book-Running Managers:

 

Credit Suisse Securities (USA) LLC

RBS Securities Inc.

Scotia Capital (USA) Inc.

Senior Co-Managers:

 

Mitsubishi UFJ Securities (USA), Inc.

U.S. Bancorp Investments, Inc.

Wells Fargo Securities, LLC

Co-Managers:

 

Banc of America Securities LLC

Credit Agricole Securities (USA) Inc.

Fifth Third Securities, Inc.

SG Americas Securities, LLC

Trade date:

 

July 13, 2010

Settlement date (T+3):

 

July 16, 2010

CUSIP:

 

092113 AG4

 

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, RBS Securities Inc. toll free at 1-866-884-2071 or Scotia Capital (USA) Inc. toll free at 1-800-372-3930.