Short-Term Debt and Credit Facilities

12 Months Ended

Dec. 31, 2022

10.

Short-Term Debt and Credit Facilities

The Registrants borrow on a short-term basis, as necessary, by the issuance of commercial paper and by borrowings under their revolving credit agreements. OGE Energy also borrows under term credit agreements maturing in one year or less, as necessary. As of December 31, 2022, OGE Energy had no short-term debt as compared to $486.9 million of short-term debt at December 31, 2021.

The following table presents information regarding the Registrants' revolving credit agreements at December 31, 2022.


Entity	Aggregate Commitment		Amount Outstanding (A)		Weighted-Average Interest Rate				Expiration
	(In millions)
OGE Energy (B)	$	550.0	$	—		—		(F)	December 17, 2027 (G)
OGE Energy (C)		50.0		—		—		(F)	May 24, 2025
OG&E (D)(E)		550.0		0.4		1.15	%	(F)	December 17, 2027 (G)
Total	$	1,150.0	$	0.4		1.15	%

(A)

Includes direct borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit at December 31, 2022.

(B)

This bank facility is available to back up OGE Energy's commercial paper borrowings and to provide revolving credit borrowings. This bank facility can also be used as a letter of credit facility.

(C)

See Note 9 for further information about this revolving credit facility.

(D)

This bank facility is available to back up OG&E's commercial paper borrowings and to provide revolving credit borrowings. This bank facility can also be used as a letter of credit facility.

(E)

OG&E has an intercompany borrowing agreement with OGE Energy whereby OG&E has access to up to $450.0 million of OGE Energy's revolving credit amount. This agreement has a termination date of December 17, 2027. At December 31, 2022, there were $84.1 million in intercompany borrowings under this agreement.

(F)

Represents the weighted-average interest rate for the outstanding borrowings under the revolving credit agreements, commercial paper borrowings and letters of credit.

(G)

In December 2021, the Registrants entered into unsecured five-year revolving credit agreements totaling $1.1 billion. Each of the revolving credit facilities contained an option, which could be exercised up to two times, to extend the term of the respective facility for an additional year. In December 2022, the Registrants each entered into an amendment to their credit facility that extends the term of each credit facility for one year, until December 2027. Further, each credit facility amendment gives each of the Registrants the option of extending such commitments for up to two additional one-year periods.

In December 2022, the Registrants each entered into an amendment to their revolving credit facilities that replaced the LIBOR rate with the SOFR rate. The amendment to OGE Energy's credit facility also increased OGE Energy's maximum debt to capitalization ratio from 65 percent to 70 percent. OG&E's credit facility has a financial covenant requiring that OG&E maintains a maximum debt to capitalization ratio of 65 percent, as defined in such facility. The Registrants' facilities each also contain covenants which restrict the respective borrower and certain of its subsidiaries in respect of, among other things, mergers and consolidations, sales of all or substantially all assets, incurrence of liens and transactions with affiliates. The Registrants' facilities are each subject to acceleration upon the occurrence of any default, including, among others, payment defaults on such facilities, breach of representations, warranties and covenants, acceleration of indebtedness (other than intercompany and non-recourse indebtedness) of $100.0 million or more in the aggregate, change of control (as defined in each such facility), nonpayment of uninsured judgments in excess of $100.0 million and the occurrence of certain Employee Retirement Income Security Act and bankruptcy events, subject where applicable to specified cure periods.

The Registrants' ability to access the commercial paper market could be adversely impacted by a credit ratings downgrade or major market disruptions. Pricing grids associated with the Registrants' credit facilities could cause annual fees and borrowing rates to increase if an adverse rating impact occurs. The impact of any future downgrade could include an increase in the costs of the Registrants' short-term borrowings, but a reduction in the Registrants' credit ratings would not result in any defaults or accelerations. Any future downgrade could also lead to higher long-term borrowing costs and, if below investment grade, would require the Registrants to post collateral or letters of credit.

OG&E must obtain regulatory approval from the FERC in order to borrow on a short-term basis. OG&E has the necessary regulatory approvals to incur up to $1.0 billion in short-term borrowings at any one time for a two-year period beginning January 1, 2023 and ending December 31, 2024.