Tennessee Valley Authority inks $1B credit facility
Tennessee Valley Authority entered a Third Amended and Restated $1,000,000,000 July Maturity Credit Agreement on July 10, 2026.
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Form Type
8-K
Rhea-AI Filing Summary
Tennessee Valley Authority entered a Third Amended and Restated $1,000,000,000 July Maturity Credit Agreement on July 10, 2026. The facility, arranged by Toronto Dominion (Texas) LLC and a syndicate of banks, allows access to up to $1,000,000,000 in loans or letters of credit.
The agreement expires on July 10, 2031. Borrowing costs and fees, including an unused facility fee and letter of credit fees, vary based on market factors and the rating of TVA's senior unsecured long-term non-credit enhanced debt. It is reported under the items for creation of a direct financial obligation and an obligation under an off-balance sheet arrangement.
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8-K Event Classification
3 items: 1.01, 2.03, 9.01
3 items
Item 1.01
Entry into a Material Definitive Agreement
Business
The company signed a significant contract such as a merger agreement, credit facility, or major partnership.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
Financial
The company incurred a new significant debt or off-balance-sheet obligation.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Credit facility size: $1,000,000,000
Credit Agreement maturity: July 10, 2031
Agreement date: July 10, 2026
+1 more
4 metrics
Credit facility size
$1,000,000,000
Maximum combined amount of loans or letters of credit available under the Credit Agreement
Credit Agreement maturity
July 10, 2031
Expiration date of the Third Amended and Restated July Maturity Credit Agreement
Agreement date
July 10, 2026
Date TVA entered into the Third Amended and Restated July Maturity Credit Agreement
Prior credit agreement date
March 25, 2022
Date of the Second Amended and Restated $1,000,000,000 March Maturity Credit Agreement referenced as predecessor
Key Terms
Material Definitive Agreement, Letter of Credit, unused facility fee, senior unsecured long-term non-credit enhanced debt, +1 more
5 terms
Material Definitive Agreement regulatory
"Item 1.01 Entry into a Material Definitive Agreement."
A material definitive agreement is a legally binding contract that creates major, long‑term obligations or rights for a company, such as loans, asset sales, mergers, or supplier deals. Think of it like a mortgage or lease for a business: it can change future cash flow, risk and control, so investors watch these agreements closely because they can materially affect a company’s value, financial health and stock price.
Letter of Credit financial
"The Toronto-Dominion Bank, New York Branch, serves as Letter of Credit Issuer"
A letter of credit is a bank’s written promise to pay a seller on behalf of a buyer once specified shipping or delivery documents are presented, acting like a guaranteed cashier’s check that only pays when the agreed conditions are met. Investors care because letters of credit reduce payment and counterparty risk, affect a company’s working capital and credit exposure, and can influence deal certainty in contracts, trade financing, and acquisitions.
unused facility fee financial
"TVA is required to pay an unused facility fee on the portion"
senior unsecured long-term non-credit enhanced debt financial
"depending on the rating of TVA's senior unsecured long-term non-credit enhanced debt"
off-balance sheet arrangement regulatory
"Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement"
An off-balance sheet arrangement is a financial commitment or asset that a company keeps out of its main financial statements so it does not show up as a direct asset or liability. Think of it like renting equipment or using a separate storage locker instead of putting the item in your home: the economic effects exist, but they aren’t listed on the company’s primary balance sheet. Investors care because these arrangements can hide risks, obligations or sources of cash flow that affect a company’s true financial strength and future performance.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What is the size and term of Tennessee Valley Authority (TVC)'s new credit agreement?
Tennessee Valley Authority entered a $1,000,000,000 Third Amended and Restated July Maturity Credit Agreement. The facility permits borrowings or letters of credit and is scheduled to expire on July 10, 2031, providing multi-year committed liquidity from a syndicate of banks.
Which banks participate in Tennessee Valley Authority (TVC)'s new $1,000,000,000 facility?
Toronto Dominion (Texas) LLC acts as Administrative Agent, with The Toronto-Dominion Bank, New York Branch, as Letter of Credit Issuer and a Lender. Other lenders include Bank of America, Canadian Imperial Bank of Commerce, Morgan Stanley Bank, The Bank of New York Mellon, and U.S. Bank.
How can Tennessee Valley Authority (TVC) use the new $1,000,000,000 credit facility?
The Credit Agreement allows TVA to access up to $1,000,000,000 in either loans or letters of credit. This flexibility lets TVA choose between direct borrowings and standby support via letters of credit within the same overall commitment amount, subject to agreement terms.
How are interest and fees determined under Tennessee Valley Authority (TVC)'s new credit agreement?
The interest rate on any borrowing is variable, based on market factors and TVA's senior unsecured long-term non-credit enhanced debt rating. TVA must also pay an unused facility fee and letter of credit fees, which can fluctuate with the same credit rating.
What 8-K reporting items does Tennessee Valley Authority (TVC)'s credit agreement trigger?
The agreement is disclosed as an Entry into a Material Definitive Agreement and under the item for Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement, reflecting both borrowing capacity and potential letter of credit obligations.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Accepted by SEC EDGAR
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13, 15(d), or 37 of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 10, 2026
(Exact name of registrant as specified in its charter)
A corporate agency of the (State or other jurisdiction of incorporation or organization) | (Commission file number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
(Registrant's telephone number, including area code)
None
(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:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
| N/A | N/A | N/A | ||||||
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 o
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. o
Item 1.01 Entry into a Material Definitive Agreement.
On July 10, 2026, TVA entered into a Third Amended and Restated $1,000,000,000 July Maturity Credit Agreement (the “Credit Agreement”) that amends and restates the Second Amended and Restated $1,000,000,000 March Maturity Credit Agreement dated as of March 25, 2022. Toronto Dominion (Texas) LLC serves as Administrative Agent for the Credit Agreement, and The Toronto-Dominion Bank, New York Branch, serves as Letter of Credit Issuer and a Lender. Other Lenders include Bank of America, N.A., Canadian Imperial Bank of Commerce, New York Branch, Morgan Stanley Bank, N.A., The Bank of New York Mellon, and U.S. Bank National Association. TD Securities (USA) LLC serves as Lead Arranger and Bookrunner.
The Credit Agreement allows TVA to access up to $1,000,000,000 in either loans or letters of credit and will expire on July 10, 2031, unless the maturity date is extended in accordance with the terms of the agreement. The interest rate on any borrowing under the Credit Agreement is variable based on market factors and the rating of TVA’s senior unsecured long-term non-credit enhanced debt. TVA is required to pay an unused facility fee on the portion of the $1,000,000,000 against which TVA has not borrowed or committed under letters of credit. This fee, along with the fee on any letter of credit, may fluctuate depending on the rating of TVA’s senior unsecured long-term non-credit enhanced debt.
This description of the Credit Agreement is a summary only and is qualified in its entirety by the full and complete text of the Credit Agreement. A copy of the Credit Agreement is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 above is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
| EXHIBIT NO. | DESCRIPTION OF EXHIBIT | ||||
| 10.1 | Third Amended and Restated July Maturity Credit Agreement Dated as of July 10, 2026, Among Tennessee Valley Authority, as the Borrower, Toronto Dominion (Texas) LLC, as Administrative Agent, The Toronto-Dominion Bank, New York Branch, as Letter of Credit Issuer and a Lender, Bank of America, N.A., Canadian Imperial Bank of Commerce, New York Branch, Morgan Stanley Bank, N.A., The Bank of New York Mellon, and U.S. Bank National Association | ||||
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 hereunto duly authorized.
| Tennessee Valley Authority | |||||
| (Registrant) | |||||
| Date: July 15, 2026 | /s/ Thomas C. Rice | ||||
| Thomas C. Rice | |||||
| Executive Vice President and | |||||
| Chief Financial Officer | |||||
EXHIBIT INDEX
This exhibit is filed pursuant to Items 1.01 and 2.03 hereof.
| EXHIBIT NO. | DESCRIPTION OF EXHIBIT | ||||
10.1 | Third Amended and Restated July Maturity Credit Agreement Dated as of July 10, 2026, Among Tennessee Valley Authority, as the Borrower, Toronto Dominion (Texas) LLC, as Administrative Agent, The Toronto-Dominion Bank, New York Branch, as Letter of Credit Issuer and a Lender, Bank of America, N.A., Canadian Imperial Bank of Commerce, New York Branch, Morgan Stanley Bank, N.A., The Bank of New York Mellon, and U.S. Bank National Association | ||||