Avista to repay borrowings under credit facility via new bond offering

By Tali Rackner

Minneapolis, May 15 – Avista Corp. plans to repay the expected $39.5 million of borrowings under its $400 million credit facility using the net proceeds from a new first mortgage bond offering, according to a 424B3 filing with the Securities and Exchange Commission.

Of the $39.5 million outstanding, $7.5 million was applied to the payment at maturity on May 11, 2018 of the principal amount of 7.39% series A secured medium-term first mortgage bonds and the balance was applied to construction, facility improvement and maintenance programs and other general corporate purposes permitted by law.

Borrowings under the facility bear interest at a variable rate, the weighted average of which was 2.3% for the three months ended March 31, 2018.

Proceeds will also be used to pay $15.5 million principal amount of 7.45% series A secured medium-term first mortgage bonds at maturity on June 11, 2018 and $250 million principal amount of 5.95% first mortgage bonds at maturity on June 1, 2018.

Avista is a Spokane, Wash.-based energy company.

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