Debt and Other Obligations

Debt Outstanding

Total debt outstanding at June 30, 2018, and September 30, 2017, consisted of the following:



Debt Outstanding
	At June 30, 2018			At September 30, 2017
Short-term debt
Short-term debt, net	$	1,886		$	1,998
Current maturities of power bonds	1,032			1,728
Current maturities of long-term debt of variable interest entities	37			36
Current maturities of notes payable	47			53
Total current debt outstanding, net	3,002			3,815
Long-term debt
Long-term power bonds⁽¹⁾	20,311			20,357
Long-term debt of variable interest entities	1,156			1,175
Long-term notes payable	23			69
Unamortized discounts, premiums, issue costs, and other	(157		)	(163		)
Total long-term debt, net	21,333			21,438
Total outstanding debt	$	24,335		$	25,253

Note

(1) Includes net exchange gain from currency transactions of $136 million and $125 million at June 30, 2018, and September 30, 2017, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2017, to June 30, 2018:



Debt Securities Activity
	Date	Amount			Interest Rate
Issues
2018 Series A⁽¹⁾	March 2018	$	1,000		2.25	%
Discount on debt issues		(2		)
Total long-term debt issuances		$	998

Redemptions/Maturities⁽²⁾
electronotes^®	First Quarter 2018	$	47		4.10	%
electronotes^®	Second Quarter 2018	2			3.50	%
electronotes^®	Third Quarter 2018	3			2.90	%
1997 Series E	First Quarter 2018	650			6.25	%
2009 Series B	First Quarter 2018	1			3.77	%
2008 Series B	Third Quarter 2018	1,000			4.50	%
2009 Series B	Third Quarter 2018	28			3.77	%
Total redemptions/maturities of power bonds		1,731
Notes payable		52			1.22	%
Debt of variable interest entities		18			4.31	%
Total redemptions/maturities of debt		$	1,801

Notes

(1) The 2018 Series A bonds were issued at 99.8 percent of par.

(2) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2018 with a maturity date of September 30, 2018. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at June 30, 2018. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

TVA also has funding available under four long-term revolving credit facilities totaling $2.7 billion: a $150 million credit facility that matures on December 12, 2019, a $500 million credit facility that matures on February 1, 2022, a $1.0 billion credit facility that matures on June 2, 2020, and a $1.0 billion credit facility that matures on June 13, 2023. The interest rate on any borrowing under these facilities varies 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 total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At June 30, 2018, and September 30, 2017, there were approximately $912 million and $1.2 billion, respectively, of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 13 — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available under the four long-term credit facilities:



Summary of Long-Term Credit Facilities At June 30, 2018
	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
Maturity Date
December 2019	$	150	$	37	$	—	$	113
February 2022	500		500		—		—
June 2020	1,000		202		—		798
June 2023	1,000		173		—		827
Total	$	2,650	$	912	$	—	$	1,738

Lease/Leasebacks

TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking combustion turbine units ("CTs") as well as certain qualified technological equipment and software (collectively, "QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. On September 20, 2017, TVA acquired 100 percent of the equity interests in two special purpose entities ("SPEs") created for the purpose of facilitating a portion of the leaseback arrangements. As a result of the acquisition, TVA effectively settled $70 million of its leaseback obligations related to eight CTs. On July 20, 2016, TVA acquired 100 percent of the equity interests in two SPEs created for the purpose of facilitating lease/leaseback arrangements. As a result of the acquisition, TVA effectively settled $70 million of its leaseback obligations related to eight CTs. At June 30, 2018, and September 30, 2017, the outstanding leaseback obligations related to the remaining CTs and QTE were $302 million and $338 million, respectively.