Avista Corp. has a committed line of credit in the total amount of $500 million, with an expiration date of June 2028 and the option to extend for two additional one year periods (subject to customary conditions). In June 2023, the then-existing agreement was amended to increase the capacity of the committed line of credit from $400 million to $500 million, extend the expiration date and replace the London Interbank Offered Rate (LIBOR) provisions with SOFR provisions. The committed line of credit is secured by non-transferable first mortgage bonds of Avista Corp. issued to the agent bank that would only be payable in the event, and then only to the extent, Avista Corp. defaults on its obligations under the committed line of credit. The bonds would bear interest at a rate of 12 percent.

Balances outstanding and interest rates on borrowings (excluding letters of credit) under Avista Corp.’s revolving committed line of credit were as follows as of June 30, 2023 and December 31, 2022 (dollars in thousands):


	June 30,			December 31,
	2023			2022
Borrowings outstanding at end of period	$	203,000		$	313,000
Letters of credit outstanding at end of period		4,638			35,563
Average interest rate on borrowings at end of period		6.24	%		5.31	%

In December 2022, Avista Corp. entered into a revolving credit agreement in the amount of $100 million. As of December 31, 2022, Avista Corp. did not have any outstanding borrowings under this agreement. The agreement was terminated in June 2023.

The borrowings outstanding under Avista Corp.'s committed lines of credit were classified as short-term borrowings on the Condensed Consolidated Balance Sheets.

In December 2022, Avista Corp. entered into a term loan agreement in the amount of $150 million with a maturity date of March 30, 2023. Avista Corp. borrowed the entire $150 million available under the agreement in 2022, and repaid the entire outstanding balance in March 2023.

In December 2022, Avista Corp. entered into a letter of credit agreement in the aggregate amount of $50 million. Either party may terminate the agreement at any time.

Avista Corp. had $16.0 million and $18.5 million in letters of credit outstanding under this agreement as of June 30, 2023 and December 31, 2022, respectively. Letters of credit are not reflected on the Condensed Consolidated Balance Sheets. If a letter of credit were drawn upon by the holder, we would have an immediate obligation to reimburse the bank that issued the letter.

The short-term borrowing agreements contain customary covenants and default provisions, including a change in control (as defined in the agreements). The events of default under each of the credit facilities also include a cross default from other indebtedness (as defined) and, in the case of the letter of credit agreement, other obligations. The committed line of credit agreement also includes a covenant which does not permit the ratio of “consolidated total debt” to “consolidated total capitalization” of Avista Corp. to be greater than 65 percent at any time. As of June 30, 2023, the Company was in compliance with this covenant.

AEL&P has a committed line of credit in the amount of $25.0 million that expires in June 2028. There were no borrowings or letters of credit outstanding under this agreement as of June 30, 2023 and December 31, 2022. The committed line of credit is secured by non-transferable first mortgage bonds of AEL&P issued to the agent bank that would only become due and payable in the event, and then only to the extent, that AEL&P defaults on its obligations under the committed line of credit.