On March 19, 2026, Otter Tail Power Company, a wholly owned subsidiary of Otter Tail Corporation, entered into a Note Purchase Agreement, issuing $170 million in senior unsecured notes. This issuance includes $100 million in 5.33% Series 2026A Senior Unsecured Notes due March 19, 2036, and $70 million in 6.04% Series 2026B Senior Unsecured Notes due June 4, 2056. The proceeds from these notes are earmarked for capital expenditures, refinancing existing debt, and general corporate purposes. The Note Purchase Agreement imposes several restrictions on the company's operations, including limitations on mergers, asset sales, and incurring additional debt. Specifically, the company must maintain its interest-bearing debt at no more than 65% of total capitalization and priority indebtedness at no more than 20%. The Series 2026A Notes were issued immediately, while the Series 2026B Notes are expected to be issued on June 4, 2026, pending customary closing conditions. This strategic move is anticipated to enhance the company's liquidity and support its growth strategy, although the restrictions may limit operational flexibility in the near term.

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