Empire District Electric (“EDE”) Entered into a Private Placement Agreement for $88 million

July 23, 2012 11:08 by David Patterson in Financing  //  Tags:   //   Comments (0)

According to EDE's Form 8-K, "On April 2, 2012, The Empire District Electric Company (the “Company”) entered into a Bond Purchase Agreement, dated as of April 2, 2012, for a private placement of $88,000,000 aggregate principal amount of its 3.58% First Mortgage Bonds due 2027. The first settlement of $38,000,000 occurred on April 2, 2012, and a second settlement of $50,000,000 is anticipated to occur on or about June 1, 2012. The bonds will mature on April 2, 2027. Interest is payable semi-annually on the bonds on each April 2 and October 2, commencing October 2, 2012."

EDE's Form 8-K's concerning this private placement are available here and here.

A private placement is a sale of a security to a few "qualified" investors.  Purchasers are often insurance companies, pension funds, or banks.  Although private placements are subject to the Securities Act of 1933, the securities offered do not have to be registered with the Securities and Exchange Commission if the issuance of the securities conforms to an exemption from registration as set forth in the Securities Act of 1933. Most private placements are offered under the Rules known as Regulation D.

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