Otter Tail Corp Enters Material Definitive Agreement

TL;DR

OTTR signed a big deal, creating a new financial obligation.

AI Summary

On December 11, 2024, Otter Tail Corporation entered into a material definitive agreement related to a direct financial obligation. The filing details the creation of this obligation under an off-balance sheet arrangement.

Why It Matters

This filing indicates a significant financial commitment or obligation for Otter Tail Corporation, which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — Entering into new material definitive agreements and financial obligations can introduce financial risks and uncertainties for a company.

Key Players & Entities

• Otter Tail Corporation (company) — Registrant
• December 11, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $5.00 — ch registered Common Shares, par value $5.00 per share OTTR The Nasdaq Stock Market
• $170 million — ecured revolving credit facility with a $170 million line of credit the Company can draw on
• $40 million — it in an aggregate amount not to exceed $40 million outstanding at any time. The line of cr
• $290 million — The line of credit may be increased to $290 million on the terms and subject to the conditi
• $220 million — ecured revolving credit facility with a $220 million line of credit OTP can draw on to refin
• $50 million — it in an aggregate amount not to exceed $50 million outstanding at any time. The line of cr
• $300 million — The line of credit may be increased to $300 million on the terms and subject to the conditi
• $31.1 million — dit Agreement. As of December 11, 2024, $31.1 million was outstanding under the OTP Credit Ag
• $8.8 million — ng under the OTP Credit Agreement, plus $8.8 million of outstanding letters of credit, all o

Filing Documents

• ottr-20241211.htm (8-K) — 30KB
• ottertailcorporationsixtha.htm (EX-10.1) — 1184KB
• ottertailpowercompanyfifth.htm (EX-10.2) — 1106KB
• image_0.jpg (GRAPHIC) — 11KB
• image_0a.jpg (GRAPHIC) — 11KB
• 0001466593-24-000147.txt ( ) — 2837KB
• ottr-20241211.xsd (EX-101.SCH) — 2KB
• ottr-20241211_lab.xml (EX-101.LAB) — 22KB
• ottr-20241211_pre.xml (EX-101.PRE) — 13KB
• ottr-20241211_htm.xml (XML) — 3KB

01 Entry Into A Material Definitive Agreement

Item 1.01 Entry Into A Material Definitive Agreement Otter Tail Corporation Amended and Restated Credit Agreement On December 11, 2024, Otter Tail Corporation (the "Company") entered into a Sixth Amended and Restated Credit Agreement (the "Otter Tail Credit Agreement") with certain banks as named therein, and led by U.S. Bank National Association ("U.S. Bank"), as administrative agent. The agreement provides for an unsecured revolving credit facility with a $170 million line of credit the Company can draw on to refinance certain indebtedness, fund capital expenditures and support the operations of the Company and its subsidiaries, including letters of credit in an aggregate amount not to exceed $40 million outstanding at any time. The line of credit may be increased to $290 million on the terms and subject to the conditions described in the agreement. The agreement expires on December 11, 2029. The terms of the credit facility dictate a variable rate of interest to be charged on outstanding balances and impose a commitment fee based on the average unused amount available to be drawn under the facility. The variable rate of interest to be charged is based on a benchmark interest rate as selected by the borrower at the time of an advance, plus an applicable margin as defined in the agreement, which varies depending on the benchmark interest rate selected, and is subject to adjustment based on the credit ratings of the borrower. The Otter Tail Credit Agreement, which is filed as Exhibit 10.1 to this Form 8-K, contains a number of restrictions on the Company and its "Material Subsidiaries" (as defined in the Otter Tail Credit Agreement and specifically excluding Otter Tail Power Company), including restrictions on the ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of any other party and engage in transactions with related parties. The agreement includes a financial covenant which requires the ratio of the C

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits (d) Exhibits 10.1 Sixth Amended And Restated Credit Agreement, dated as of December 11 , 2024, by and between Otter Tail Corporation, as Borrower, and the banks named therein, with U.S. Bank National Association, as Administrative Agent 10.2 Fifth Amended And Restated Credit Agreement, dated as of December 11 , 2024, by and between Otter Tail Power Company, as Borrower, and the banks named therein, with U.S. Bank National Association, as Administrative Agent 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. OTTER TAIL CORPORATION Date: December 16, 2024 By: /s/ Todd R. Wahlund Todd R. Wahlund Chief Financial Officer