Credit Agreement Credit Agreement (Notes)

3 Months Ended

Mar. 31, 2020

COMMITTED LINES OF CREDIT

Avista Corp.

Avista Corp. has a committed line of credit with various financial institutions in the total amount of $400.0 million. The Company expects to amend and extend the revolving line of credit agreement in the second quarter for a revised term of one additional year beyond the current maturity date of April 2021, with the option to extend for an additional one year period. The committed line of credit is secured by non-transferable first mortgage bonds of the Company issued to the agent bank that would only become due and payable in the event, and then only to the extent, that the Company defaults on its obligations under the committed line of credit.

Balances outstanding and interest rates of borrowings (excluding letters of credit) under the Company’s revolving committed line of credit were as follows as of March 31, 2020 and December 31, 2019 (dollars in thousands):



	March 31,			December 31,
	2020			2019
Balance outstanding at end of period	$	185,000		$	182,300
Letters of credit outstanding at end of period	$	32,983		$	21,473
Average interest rate at end of period	1.66		%	2.64		%

As of March 31, 2020 and December 31, 2019, the borrowings outstanding under Avista Corp.'s committed line of credit were

classified as short-term borrowings on the Condensed Consolidated Balance Sheet.

AEL&P

AEL&P has a committed line of credit in the amount of $25.0 million that expires in November 2024. As of March 31, 2020 and December 31, 2019, there were borrowings of $0 and $3.5 million, respectively, and there were no letters of credit outstanding under this committed line of credit. 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.

CREDIT AGREEMENT

Credit Agreement

On April 6, 2020, the Company entered into a Credit Agreement with U.S. Bank National Association, as Lender and Administrative Agent, and CoBank, ACB, as Lender in the amount of $100 million at an interest rate of 1-Month LIBOR plus 125 basis points with a maturity date of April 5, 2021. Loans under this agreement are unsecured and have a variable annual interest rate determined by either the Eurodollar rate or the Alternative Base Rate depending on the type of loan selected by Avista Corp.

The Credit Agreement contains customary covenants and default provisions, including a covenant not to permit the ratio of "consolidated total debt" to "consolidated total capitalization" of Avista Corp. to be greater than 65 percent at any time.

The Company has borrowed the entire $100 million available under this agreement, which is being used to provide additional liquidity. The amount can be repaid early; however, the amount repaid cannot be re-borrowed.