ONCOR ELECTRIC DELIVERY CO LLC 8-K

What Happened On December 29, 2025, Oncor Electric Delivery Company LLC filed an 8-K disclosing that on December 23, 2025 it entered into a Term Loan Credit Agreement providing a $1.4 billion term loan facility. Sumitomo Mitsui Banking Corporation acts as administrative agent for the lenders. On December 26, 2025 Oncor made an initial borrowing of $925 million under the facility and used the proceeds for general corporate purposes, including repayment of outstanding commercial paper (which had been used, among other things, to repay $174 million of Oncor’s Senior Notes, Series A, due Dec 3, 2025).

Key Details

• Facility size: $1.4 billion term loan facility; funding window allows up to two borrowings on or before February 23, 2026.
• Initial draw: $925 million borrowed on December 26, 2025.
• Interest and fees: Borrowings bear interest at either term SOFR + 0.0875% or an alternate base rate (prime, fed funds +0.50%, or 1-month term SOFR +1.0%); commitment fee of 0.05% per annum on daily average available commitment during the funding period.
• Covenants and defaults: Requires Oncor to maintain consolidated senior debt to consolidated total capitalization ≤ 0.65; includes customary reporting, covenants and events of default (including certain change-of-control and cross-default triggers for obligations > $150 million).

Why It Matters This agreement gives Oncor immediate liquidity (a $925M draw) and access to up to $1.4B total through Feb 23, 2026, which management says will support working capital and general corporate needs and helped retire short-term commercial paper. Investors should note the financial covenant limiting senior debt relative to capitalization (0.65 max) and standard default provisions that could accelerate the loan if significant defaults or certain ownership changes occur. The facility’s low margin over SOFR indicates relatively inexpensive financing compared with many alternatives.