Financing Activities

3 Months Ended

Sep. 30, 2021

Financing Activities [Abstract]

Financing Activities

Financing Activities

In March 2021, we issued and sold $100.0 million aggregate principal amount of Montana First Mortgage Bonds (the bonds) at a fixed interest rate of 1.00% maturing on March 26, 2024. The net proceeds were used to repay in full our outstanding $100.0 million term loan that was due April 2, 2021. We may redeem some or all of the bonds at any time in whole, or from time to time in part, at our option, on or after March 26, 2022, at a redemption price equal to 100% of the principal amount of the bonds to be redeemed, plus accrued and unpaid interest on the principal amount of the bonds being redeemed to, but excluding, the redemption date. The bonds are secured by our electric and natural gas assets in Montana and Wyoming.

In April 2021, we entered into an Equity Distribution Agreement with BofA Securities, Inc., CIBC World Markets Corp, Credit Suisse Securities (USA) LLC, and J.P. Morgan Securities LLC, collectively the sales agents, pursuant to which we may offer and sell shares of our common stock from time to time, having an aggregate gross sales price of up to $200.0 million, through an At-the-Market (ATM) offering program, including an equity forward sales component. During the three months ended September 30, 2021, we issued 1,040,085 shares of our common stock under the ATM program at an average price of $63.13, for net proceeds of $64.8 million, which is net of sales commissions and other fees paid of approximately $0.9 million. During the nine months ended September 30, 2021, we issued 1,919,394 shares of our common stock under the ATM program at an average price of $63.94, for net proceeds of $121.1 million, which is net of sales commissions and other fees paid of approximately $1.7 million.

In July 2021, our two loans totaling $27.0 million associated with the New Market Tax Credit (NMTC) financing agreement were extinguished. These loans were satisfied with our $18.2 million investment in the VIE, investor forgiveness of $7.9 million for substantially all of the benefits derived from the tax credits, and cash payment of $0.9 million. In accordance with our last rate case filing in the state of Montana, the portion of the loan forgiven was recorded as a reduction to the cost of the office building associated with the NMTC financing agreement. This cash payment is reflected within the financing activities section of our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2021; however, the remaining reduction to Long-term debt, Other noncurrent assets, and Property, plant and equipment are non-cash financing activities that are not reflected within our Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2021.