Tennessee Valley Authority (TVE) renews $1B credit line to 2030

Rhea-AI Filing Summary

Tennessee Valley Authority entered into a Third Amended and Restated September Maturity Credit Agreement providing access to up to $1,000,000,000 in loans or letters of credit. The facility, arranged with Royal Bank of Canada as administrative agent and several other major banks as lenders, runs until September 10, 2030, unless extended under the agreement’s terms. Borrowings carry a variable interest rate that depends on market conditions and the rating of TVA’s senior unsecured long-term non-credit enhanced debt. TVA will also pay an unused facility fee on any undrawn portion of the $1,000,000,000 and fees on any letters of credit, with both fee levels tied to TVA’s debt rating.

Insights

Corporate credit analyst

TVA renews a $1,000,000,000 revolving credit line to 2030.

The Tennessee Valley Authority put in place a Third Amended and Restated September Maturity Credit Agreement that allows borrowing or issuing letters of credit up to $1,000,000,000. Royal Bank of Canada serves as administrative agent, with several large banks participating as lenders, which underscores continued access to bank liquidity.

The facility matures on September 10, 2030, providing a multi-year backstop for TVA’s funding and liquidity needs. The interest rate and fees, including the unused facility fee and any letter of credit fees, are explicitly linked to TVA’s senior unsecured long-term non-credit enhanced debt rating, so changes in that rating would directly affect TVA’s borrowing and standby costs.

This type of revolving structure is commonly used to support working capital and general corporate purposes, although specific uses are not detailed here. The amended and restated nature suggests continuity rather than a new layer of debt capacity, and the actual impact will depend on how much TVA draws over time and how its credit ratings evolve before the 2030 maturity.

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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): September 10, 2025

TENNESSEE VALLEY AUTHORITY

(Exact name of registrant as specified in its charter)

A corporate agency of the United States created by an act of Congress  (State or other jurisdiction of incorporation or organization)

000-52313 (Commission file number)

62-0474417  (IRS Employer Identification No.)

400 W. Summit Hill Drive Knoxville, Tennessee  (Address of principal executive offices)

37902  (Zip Code)

(865) 632-2101

(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:

[ ] 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
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 September 10, 2025, the Tennessee Valley Authority ("TVA") entered into a Third Amended and Restated September Maturity Credit Agreement (the "Credit Agreement") with Royal Bank of Canada, as Administrative Agent, Letter of Credit Issuer, and a Lender, and Truist Bank, Barclays Bank PLC, Wells Fargo Bank, N.A., Regions Bank, and Citibank, N.A., as Lenders.

The Credit Agreement allows TVA to access up to $1,000,000,000 in either loans or letters of credit and will expire on September 10, 2030, 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 September Maturity Credit Agreement Dated as of September 10, 2025, Among Tennessee Valley Authority, as the Borrower, Royal Bank of Canada, as Administrative Agent, Letter of Credit Issuer, and a Lender, and the Other Lenders Party Thereto

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: September 15, 2025			/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 September Maturity Credit Agreement Dated as of September 10, 2025, Among Tennessee Valley Authority, as the Borrower, Royal Bank of Canada, as Administrative Agent, Letter of Credit Issuer, and a Lender, and the Other Lenders Party Thereto

FAQ

What did Tennessee Valley Authority (TVE) disclose in this 8-K filing?

Tennessee Valley Authority reported that it entered into a Third Amended and Restated September Maturity Credit Agreement, which provides a revolving source of loans and letters of credit with a total capacity of $1,000,000,000 and a stated maturity of September 10, 2030.

How large is the new credit facility for Tennessee Valley Authority (TVE)?

The Credit Agreement allows Tennessee Valley Authority to access up to $1,000,000,000 in aggregate, which can be used in the form of loans or letters of credit provided by the participating banks.

When does the Tennessee Valley Authority (TVE) credit agreement expire?

The credit facility is scheduled to expire on September 10, 2030, although the agreement allows for the maturity date to be extended in accordance with its terms.

How is the interest rate determined under TVAs $1,000,000,000 credit agreement?

The interest rate on any borrowing under the Credit Agreement is variable and depends on both market factors and the rating of Tennessee Valley Authoritys senior unsecured long-term non-credit enhanced debt.

What fees does Tennessee Valley Authority (TVE) pay on this credit facility?

TVA must pay an unused facility fee on the undrawn portion of the $1,000,000,000 commitment, as well as fees on any letters of credit. These fees can fluctuate based on TVAs senior unsecured long-term non-credit enhanced debt rating.

Who are the lenders in the Tennessee Valley Authority (TVE) credit agreement?

Royal Bank of Canada acts as Administrative Agent, Letter of Credit Issuer, and a Lender. Other lenders include Truist Bank, Barclays Bank PLC, Wells Fargo Bank, N.A., Regions Bank, and Citibank, N.A.