MDU Resources Announces Public Offering of $200 Million of Shares of Common Stock with a Forward Component

Core Viewpoint - MDU Resources Group, Inc. has initiated a public offering of $200 million in common stock, with the potential for an additional $30 million, to support various corporate purposes including debt repayment and capital expenditures [1][2]. Offering Details - The offering consists of $200 million in common stock, with underwriters Wells Fargo Securities, BofA Securities, and J.P. Morgan acting as joint lead bookrunners [1]. - MDU Resources plans to grant underwriters an option to purchase up to $30 million in additional shares [1]. - Shares will be sold through various methods including transactions on the New York Stock Exchange and negotiated transactions [1]. Forward Sale Agreements - MDU Resources will enter into forward sale agreements with Wells Fargo Bank, Bank of America, and JPMorgan Chase Bank, agreeing to sell approximately $200 million in shares at an initial forward sale price equal to the underwriters' purchase price [1]. - Settlement of these agreements is expected within 24 months following the offering [1]. Use of Proceeds - MDU Resources will not receive initial proceeds from the forward sellers' sales to underwriters. However, if physical settlement occurs, proceeds will be used for general corporate purposes, including debt repayment, capital expenditures, and acquisitions [1][2]. Company Overview - MDU Resources Group, Inc. is a member of the S&P SmallCap 600 index, providing electric utility and natural gas distribution services to over 1.2 million customers [2]. - The company operates a 3,800-mile natural gas pipeline network, ensuring reliable energy delivery across the Northern Plains [2].