Tennessee Valley Authority enters $150 million three-year facility

By Marisa Wong

Morgantown, W.Va., Dec. 15 – Tennessee Valley Authority entered into a $150 million three-year credit agreement on Dec. 12, according to an 8-K filing with the Securities and Exchange Commission.

SunTrust Robinson Humphrey, Inc., BB&T Capital Markets and Regions Capital Markets are joint lead arrangers and bookrunners with SunTrust Bank as administrative agent and a lender and Branch Banking and Trust Co. as letter-of-credit issuer and a lender. Other lenders include First National Bank, First Tennessee Bank NA, HomeTrust Bank, Pinnacle Bank, Regions Bank, Trustmark National Bank and United Community Bank.

The credit agreement allows TVA to access $150 million of loans as well as $37.5 million of letters of credit, but the letters of credit reduce the amount of loans available under the agreement.

The credit agreement will expire on Dec. 12, 2019.

The interest rate ranges from Libor plus 150 basis points to Libor plus 212.5 bps, the letter-of-credit fee ranges from 100 bps to 112.5 bps, and the commitment fee ranges from 35 bps to 45 bps. Pricing is based on TVA’s senior unsecured long-term non-credit enhanced debt ratings. At closing, interest was equal to Libor plus 150 bps, the letter-of-credit fee was 100 bps, and the commitment fee was 35 bps.

Tennessee Valley Authority is a Knoxville, Tenn.-based electricity provider.

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