South Dakota-based NorthWestern Corp. announced last Friday that it paid down a seven-year term loan by $25 million, reducing the debt instrument to $74.8 million and bringing the utility holding company’s overall debt-to-capitalization near 52%. The Chapter 11 reorganized company operating as NorthWestern Energy said it has reduced debt by $33 million so far this year, and expects to drop at least another $60 million by the end of the third quarter.

NorthWestern currently has $795 million in outstanding debt, according to CFO Brian Bird, who noted that the company is scheduled to give its first quarter financial results May 2 before its CEO appears at the American Gas Association (AGA) Financial Forum in New Orleans.

Bird said the company used $25 million of available cash to pay down its Senior Secured Term Loan B, a seven-year instrument. More details on its 2005 first quarter results will be given by Bird and NorthWestern President Michael Hanson, who the same day (May 2) will speak in the afternoon at the AGA financial meeting.

“We continue to make progress on improving our capital structure by reducing debt through the payment of maturing obligations and early redemptions,” Bird said in a prepared statement late last Friday. “We are targeting further reductions this year, including the payment of $60 million in maturing first mortgage bonds at the end of the third quarter of 2005.”

NorthWestern has natural gas and electricity utility operations in three upper Midwest states — South Dakota, Montana and Nebraska.

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