DEBT AND CREDIT AGREEMENT

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

DEBT AND CREDIT AGREEMENTS

DEBT AND CREDIT AGREEMENT

There have been no significant changes to TEP's debt or credit agreement from those reported in its 2022 Annual Report on Form 10-K, except as noted below.

DEBT

Issuance and Redemptions

In February 2023, TEP issued and sold $375 million aggregate principal amount of 5.50% senior unsecured notes due April 2053. TEP may redeem the notes prior to October 15, 2052, with a make-whole premium plus accrued interest. On or after October 15, 2052, TEP may redeem the notes at par plus accrued interest. TEP used the net proceeds to redeem and repay debt and for general corporate purposes.

In March 2023, TEP repaid at maturity $150 million aggregate principal amount of 3.85% senior unsecured notes.

In March 2023, TEP redeemed at par prior to maturity $91 million aggregate principal amount of tax-exempt bonds bearing interest at a rate of 4.00% per annum.

CREDIT AGREEMENT

In June 2023, the 2021 Credit Agreement was amended to provide for the transition to SOFR-based borrowings. As of June 30, 2023, the amended agreement provides for borrowings at SOFR for the respective term plus an adjustment of 0.10%, plus an applicable margin of 1.025% or at an Alternate Base Rate plus 0.025%.