DEBT AND CREDIT AGREEMENTS

3 Months Ended

Mar. 31, 2020

There have been no significant changes to TEP's debt or credit agreements from those reported in its 2019 Annual Report on Form 10-K, except as noted below.

DEBT

Issuance

In April 2020, TEP issued and sold $350 million aggregate principal amount of 4.00% unsecured senior notes due June 2050. TEP may call the debt prior to December 15, 2049, with a make-whole premium plus accrued interest. After December 15, 2049, TEP may call the debt at par plus accrued interest. TEP used the net proceeds from the sale to repay amounts outstanding under its credit agreements, and intends to use the remaining balance for general corporate purposes.

CREDIT AGREEMENTS

2019 Credit Agreement

The following table presents components of TEP's unsecured 2019 Credit Agreement included in Borrowings Under Credit Agreements, Net on the Condensed Consolidated Balance Sheets:



	Capacity		Borrowed		Available		Weighted Average Interest Rate		Pricing
(in millions)	March 31, 2020
Term Loan	$	225	$	225	$	—	1.30	%	LIBOR + 0.550%	or ABR + 0.00%

In April 2020, net proceeds from the sale of senior unsecured notes were used to repay the outstanding term loans and terminate such agreement.

2015 Credit Agreement

The following table presents components of TEP's unsecured 2015 Credit Agreement included in Borrowings Under Credit Agreements, Net on the Condensed Consolidated Balance Sheets:



	Capacity		Sub-Limit LOC		Borrowed ⁽¹⁾		Available		Weighted Average Interest Rate		Pricing ⁽²⁾
(in millions)	March 31, 2020
Revolver and LOC	$	250	$	50	$	97	$	153	1.75	%	LIBOR + 1.000%	or ABR + 0.00%


⁽¹⁾	Includes $12 million in LOCs issued in January 2020 pursuant to TEP taking ownership of Oso Grande under the build-transfer agreement.


⁽²⁾	Interest rates and fees are based on a pricing grid tied to TEP's credit rating.

As of May 5, 2020, there was $238 million available under the revolving credit commitments and LOC facilities.