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Home My WebLink About20210617Compliance Filing.pdf,l',irytsr,a June 16,2021 Jan Noriyuki Idaho Public Utilities Commission 47 2 W . Washington Street Boise, lD 83702 Case No. AVU-U-21-01 We are submitting the following information in compliance with the Commission's Order No. 34995 under Case No. AVU-U-21-01 to enter into credit facilities up to $500,000,000. An informational notice regarding this issuance was previously provided to staff of the Commission. On June 4,2021, Avista Corporation (the Company) amended its $400.0 million committed line of credit agreement with various banks. The amendment also provides the Company the option to request an extension of the committed line of credit for two one year extensions beyond June 4, 2026,provided there is no event ofdefault prior to the requested extension. The amended committed line of credit is secured by $a00.0 million of non-transferable First Mortgage Bonds of the Company issued to the agent bank. Such First Mortgage Bonds would only become due and payable in the event, and then only to the extent, that the Company defaults on its obligations under the committed line of credit. The amended committed line of credit agreement contains customary covenants and default provisions, including a covenant not to permit the ratio of "consolidated total debf'to "consolidated total capitalization" ofAvista Corporation to be greater than 65 percent at the end ofany fiscal quarter. Attached is the term sheet for this issuance. Please contact Karrie Wilson at (509) 495-2345 if you have any questions. Sincerely i''L,!,::;li ll:::l 1-:: qJ ii'r :rF [-rfi f.*l cJm ', l 1;J: .*i"-, i-li. . i"-, I ._.i;i: lf,;s,, ",:"J:[" #'{t **'- a Jason E. Lang Director of Finance, Risk and Assistant Treasurer Page I ofl G RC FINANCING DISCUSSION SummaryTerms - RC Refinancing . Avista's $400MM credit facility w ill becone current on April 1Eh. The Company has nrcre optionality to address the facility this year as the rmrket has steadily inproved: Btend the facility w ith a new $ year or $year tenor Reset the two, 1-year extension options Reduce pricing towards preCovid levels Upfront fees have been reducing but renpin slightly elevated . Avista has the opportunity convert its revolver to sustainability-linked loans given its goal of a net zero carbon future Depending on the successful achievenent of their respective KHs, recent sustainability-linked loans have been able to inplenent the below changes to prbing . +/- up to 0.5 bps - 1.0 bps undraw n. +/- up to 5.0 bps draw n . MUFG reconrrends anending the existing credit agreenent to include the follow ing rnarket language including: Updated LIBOR replacencnt provision Borrower Facility Type Purpose Facility Amount Accordion Er(ension Options Financia! Covenant Tenor Maturity Upfront Fees Arranger Fees Securedn"tlno= Facility Fee (bps) 2 A+ / Al 12.5 A I A2 15.0 A-/ A3 17.5 BBB+ / Baal 22.5 BBB / Baa2 25.0 S BBB- / Baa3 30.0 Greon denot€s propced changes* lssu6r Ralings Avista Corporation Senior Secured Revolving Gedit Facility General Oorporate $400 million $100 million One, 1-year extension option Two, 1-year extension options Consolidated Debt / Cap Ratio < 65.0% 5 Year O April18,2022 [25.01 Actives: $[225,000] Passive: $[50,000] All-in [)rawn (L+bps) 100.0 112.5 125.0 137.5 150.0 175.0 Facility F (bps) 7.5 10.0 72.5 17.5 22.5 27.5 6 Sum m ary Te rm s & Conditions 5-Yr Disclaimer 23 The inf ormation herein provided is for information purposes only, and is not to be used or cons research, a proposal or the solcitation of an offer to sellor to buy or subscribe for serurities or inslrumenls. Ndtherthis norany othercsnmunication preparedby MUFGBank, Ltd. ('MUFG Bank, N.A. ('MUB'), MUFGSecuritiesAmerbas lnc., or otherMUFGgroup companies (colec should be construed as investmentadvice, a recommenddionor proposal to enter into a parti pursue a particular strategy, or any statement as to the likdihood tlEt a particular trans&tion ( ef f ective in light of your business objetives or operations. Befre enterirg into any particular t adv ised to obtain such indeperdentfinancial, legal, accomtirg and other advice as may be ap circum stances. ln any event, any decisbn to enter into a transaction will be yours alone, not bi prepared orprovided by MUFG. MUFG hereby disclaims ary respmsitility to you concerningl identif icdion of terms, condilions, and legd or accoultirg or other issues or risks that m ay aris particular transaclim or business stratregy. Certain inf ormaton contained in this presentatbn has been obtained or derived f rom third part informatimisbelievedtobecorrectandreliablebuthasnotbeenindependentyveritied. Whi f actual shtemerts herein and any assunptions on which information herein are based, are in r MUFG makes no representalion orwarranty regardingsuchacoJracy and shdl not be respmr in such statements or assunptions. Notethat MUFG may have issued, and may in the fuure i are inconsistent with or that reach conclusions different from the information setforth herein. S ref lect the dlferent assumptions, viovs and/o analytical m ehods of the analysls who prepare undernoobligationtoensurethatsuchotherreporbarebroughttoyouattertion. Furthermc not be current due to, among otfEr things, changes in the finarcid markets or economic envir' no obligation to update any sucfr infomation cmtahed in this presenhtion. This presentdion forecast or predictfutue events. Past performance is not a guaranteeor indication of future re prov ided herein (other than those identified as being historical) are indicative ony and do not r, to either price or size. TheMUFGlogoandnameisaservicemakof Mitsubishi UFJFinancial Groug lnc.,andmay MUFG group companiesfor branding or marketing purposes. Group mmpnies include MUF( Capital Leasing & FinarEe, LLC, MitsubshiUFJ Trustand Bankirg Corporation MUFG Securi MUFG Union Bank, N.A. Corporde orcommercbl lending ordeposit activities are performed I MUFG, including, in the United States, MUFG Bank and MUB This indicative financing proposal is provided for discussion purposes only and does not consti construed as, a commitmentto provide any financhg or any assurance thatthe financing des( av ailable. The terms and cmditbns of such f inancing must be f uly negotided and cmtahed ir documentatim duly auhorized, exeorted and deliveredby all parties. ln additiar, thedelivery be subject to, among other thirEs, (i) MU FG Bank's and/or MU B's salisfacibn with the results env ironmenhl and business due diligence, (ii) final internal apprwals by MU FG Bank and/or Ir adv erse charge in the finarcialcondition or otherwise of the relevant parties, (iv) no material a disruption in the relevant financial makets and (v) other cwtomay cmditbns, incliding then r conditions. This indicativef inancing proposal is corfidential and may not be disclosed or relea: without the prior written consent of MUFG Bank and/or MUB. MUFG Bank is NOTa member of the FDIC and its depositproducts are NOT insuredby the F gov ernment agenqy. MUB is a member of the FDIC and its deposit products are insured up to @ 2021 lvftsubishi UFJ Financhl Group lnc. All rights reserved.