LONG-TERM DEBT

6 Months Ended

Jun. 30, 2024

We have $2.7 billion of long-term debt which consists of mortgage notes payable, pollution control revenue bonds and the Springerville certificates. The mortgage notes payable and pollution control revenue bonds are secured on a parity basis by a Master First Mortgage Indenture, Deed of Trust and Security Agreement (“Master Indenture”). Substantially all our assets, rents, revenues and margins are pledged as collateral. The Springerville certificates are secured by the assets of Springerville Unit 3. All long-term debt contains certain restrictive financial covenants, including a debt service ratio ("DSR") requirement on an annual basis and an equity to capitalization ratio ("ECR") requirement of at least 18 percent at the end of each fiscal year. Other than long-term debt for the Springerville certificates that has a DSR requirement of at least 1.02 on an annual basis, all other long-term debt contains a DSR requirement of at least 1.10 on an annual basis. A DSR below 1.025 under the Master Indenture would require us to transfer all cash to a special fund managed by the trustee of the Master Indenture.

We have a secured revolving credit facility with National Rural Utilities Cooperative Finance Corporation (“CFC”), as lead arranger and administrative agent, in the amount of $520 million (“2022 Revolving Credit Agreement”) that expires on April 25, 2027 and includes a swingline sublimit of $125 million, a letter of credit sublimit of $75 million, and a commercial

paper back-up sublimit of $500 million. As of June 30, 2024, we had $404 million in availability (including $384 million under the commercial paper back-up sublimit) under the 2022 Revolving Credit Agreement.

Long-term debt consists of the following (dollars in thousands):


	June 30, 2024		December 31, 2023
Total debt	$	2,914,553	$	3,137,534
Less debt issuance costs	(18,269)		(19,723)
Less debt discounts	(8,531)		(8,678)
Plus debt premiums	10,488		10,896
Total debt adjusted for debt issuance costs, discounts and premiums	2,898,241		3,120,029
Less current maturities	(191,729)		(223,523)
Long-term debt	$	2,706,512	$	2,896,506