[8-K] Avista Corporation Reports Material Event

Rhea-AI Filing Summary

Avista Corporation (AVA) filed an 8-K disclosing the issuance and sale of $120 million first-mortgage bonds, bearing a fixed 6.18% coupon and maturing in 2055. The bonds, placed privately with institutional investors on 23 Jul 2025, were issued under the company’s long-standing Mortgage and Deed of Trust and are secured by a first-lien on substantially all utility assets. They are callable at make-whole plus accrued interest.

Management will apply the proceeds to repay borrowings under its committed credit facility that funded utility construction projects, effectively terming-out short-term debt into long-term, fixed-rate financing. Concurrently, Avista cash-settled a $10 million interest-rate swap, receiving $1.1 million; this gain will be amortized against future interest expense.

• Issue size: $120 million
• Coupon: 6.18% fixed
• Tenor: 30 years (due 2055)
• Collateral: first-mortgage on utility assets
• Use of proceeds: repay credit-line borrowings

No earnings data or additional financial statements accompanied the filing.

Positive

• Liquidity strengthened by converting short-term credit-line borrowings into 30-year fixed-rate debt.
• Interest-rate risk reduced through fixed 6.18% coupon and termination of swap with $1.1 million gain.

Negative

• Higher interest expense due to 6.18% coupon exceeding previous credit-line rates.
• Leverage increases with additional $120 million of long-term debt on balance sheet.

Insights

Financial Analyst

TL;DR: Long-term bond issuance refinances short-term debt; liquidity improves but leverage and interest cost rise—overall neutral credit impact.

The $120 million, 30-year first-mortgage bonds shift floating-rate credit-line borrowings into fixed, asset-secured funding, reducing refinancing risk and interest-rate exposure. At 6.18%, the coupon is above Avista’s existing weighted average cost, modestly increasing annual interest expense. The swap cash receipt of $1.1 million slightly offsets that cost. Given Avista’s $5 billion asset base, the debt increase is manageable, representing ~2% of total capitalization. Collateralization supports investor protection, keeping recovery prospects strong. Because proceeds merely refinance existing obligations rather than funding incremental growth, the transaction is considered operationally prudent but not materially transformative; hence, impact is neutral.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 23, 2025

AVISTA CORPORATION

(Exact name of Registrant as Specified in Its Charter)

Washington			001-03701	91-0462470
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1411 East Mission Avenue
Spokane, Washington				99202-2600
(Address of Principal Executive Offices)				(Zip Code)

Registrant’s Telephone Number, Including Area Code: 509 489-0500

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		AVA		The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Section 1 - Registrant's Business and Operations

Item 1.01 Entry into a Material Definitive Agreement.

See description of Avista Corp.’s issuance of $120.0 million of 6.18 percent first mortgage bonds due in 2055 under Item 2.03.

Section 2 - Financial Information

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

On July 23, 2025, Avista Corporation (Avista Corp. or the Company) issued and sold $120.0 million of 6.18 percent first mortgage bonds due in 2055 pursuant to a bond purchase agreement with institutional investors in the private placement market. The new first mortgage bonds were issued under and in accordance with the Mortgage and Deed of Trust, dated as of June 1, 1939, from the Company to Citibank, N.A., trustee, as amended and supplemented by various supplemental indentures and other instruments, including the Sixty-ninth Supplemental Indenture, dated as of July 1, 2025 (the “Mortgage”). The new bonds are subject to redemption prior to maturity, at the option of the Company, at a redemption price equal to the principal amount thereof plus a “make-whole” premium and plus accrued interest. The Mortgage constitutes a lien on substantially all the property of the Company (other than excepted property).

In connection with the pricing of the first mortgage bonds in July 2025, the Company cash settled one interest rate swap derivative (notional aggregate amount of $10.0 million) and received a net amount of $1.1 million, which will be amortized as a component of interest expense over the life of the debt.

The net proceeds from the sale of the new bonds will be used to repay borrowings outstanding under the Company's committed line of credit made for the construction or improvement of utility facilities or to reimburse the treasury for moneys expended for this purpose.

The bonds have not been, and will not be, registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

The Mortgage, as previously amended and supplemented, is referred to in and filed as Exhibits 4.1 through 4.69 to the Company’s Annual Report on Form 10-K for the year 2024.

Section 9 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits
4.1	Sixty-ninth Supplemental Indenture to the Mortgage dated as of July 1, 2025
104	Cover Page Interactive Data File  (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			AVISTA CORPORATION
			(Registrant)
Date:	July 25, 2025	By:	/s/ Kevin J. Christie
			Kevin J. Christie
			Senior Vice President, Chief Financial Officer, Treasurer and Regulatory Affairs Officer

FAQ

What did Avista (AVA) announce in its July 23 2025 8-K?

It issued $120 million of 6.18% first-mortgage bonds maturing in 2055 via private placement.

How will Avista use the bond proceeds?

Proceeds will repay outstanding borrowings on its committed credit facility tied to utility construction.

What is the interest rate and maturity of the new bonds?

The bonds carry a 6.18% fixed coupon and mature in 2055 (30-year tenor).

Are the bonds secured?

Yes, they are secured by a first-mortgage lien on substantially all Avista utility assets.

Did Avista execute any related derivative transactions?

The company cash-settled a $10 million interest-rate swap, receiving $1.1 million cash.