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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

| Date of report (Date of earliest event reported): | April 10, 2023 |

Commission File Number |  | Exact Name of Each Registrant as specified in its charter; State of Incorporation; Address; and Telephone Number |  | IRS Employer Identification No.
1-8962 |  | PINNACLE WEST CAPITAL CORPORATION |  | 86-0512431
|  | (an Arizona corporation) |  |
|  | 400 North Fifth Street, P.O. Box 53999 |  |
|  | Phoenix | Arizona | 85072-3999 |  |  |
|  | (602) | 250-1000 |  |  |  |
1-4473 |  | ARIZONA PUBLIC SERVICE COMPANY |  | 86-0011170
|  | (an Arizona corporation) |  |
|  | 400 North Fifth Street, P.O. Box 53999 |  |
|  | Phoenix | Arizona | 85072-3999 |  |  |
|  | (602) | 250-1000 |  |  |  |

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Stock | PNW | The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company | ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
This combined Form 8-K is separately filed or furnished by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing or furnishing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing or furnishing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

Item 1.01. Entry into a Material Definitive Agreement.
Item 1.02. Termination of a Material Definitive Agreement.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
Pinnacle West Capital Corporation (“Pinnacle West”) Facility
On April 10, 2023, Pinnacle West entered into a five-year unsecured revolving credit facility (the “Pinnacle West Facility”) with Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, Mizuho Bank, Ltd., as Co-Syndication Agent, Co-Sustainability Structuring Agent and Issuing Bank, Wells Fargo Bank, National Association, as Co-Syndication Agent and Issuing Bank, Bank of America, N.A., JPMorgan Chase Bank, N.A., MUFG Bank, Ltd., PNC Bank, National Association, and Truist Bank, as Co-Documentation Agents and Issuing Banks, the other lender parties thereto, allowing Pinnacle West to borrow, repay and reborrow, from time to time, up to $200 million through April 10, 2028.
Also, on April 10, 2023, Pinnacle West terminated its prior $200 million unsecured revolving credit facility (the “Prior Pinnacle West Facility”) with Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, Mizuho Bank, Ltd., as Syndication Agent, Co-Sustainability Structuring Agent and Issuing Bank, Bank of America, N.A., BNP Paribas, JPMorgan Chase Bank, N.A., MUFG Bank, Ltd., Truist Bank and Wells Fargo Bank, National Association, as Co-Documentation Agents and Issuing Banks, and the other lender parties thereto, which was replaced by the new Pinnacle West Facility. The Prior Pinnacle West Facility would have expired on May 28, 2026. Pinnacle West will use the new Pinnacle West Facility for general corporate purposes, including as a standby facility to support commercial paper issuances. The Pinnacle West Facility can also be used for letters of credit.
Borrowings under the Pinnacle West Facility will bear interest based on Pinnacle West’s then-current senior unsecured debt ratings. The Pinnacle West Facility includes a sustainability-linked pricing metric which permits an interest rate increase or reduction by meeting or missing targets related to specific environmental and employee health and safety sustainability objectives.
Borrowings under the Pinnacle West Facility are conditioned on Pinnacle West’s ability to make certain representations at the time each borrowing is made, except for representations concerning no material adverse effect and certain litigation matters, which were made only at the time the facility was entered into. The facility includes customary covenants, including requirements that Pinnacle West maintain ownership of a specified percentage of the outstanding capital stock of Arizona Public Service Company (“APS”), maintain a consolidated debt-to-capitalization ratio no greater than a prescribed level and comply with certain lien restrictions. The facility also includes customary events of default, including a cross default provision and a change of control provision. If an event of default occurs, lenders holding a specified percentage of the commitments, or the agent with such lenders’ consent, may terminate the obligations of the lenders to make loans under the facility and the obligations of the issuing banks to issue letters of credit and may declare the obligations outstanding under the facility to be due and payable.
Pinnacle West and its affiliates maintain normal banking and other relationships with the agents and various other lenders in the new Pinnacle West Facility and/or their affiliates, and in the Prior Pinnacle West Facility that has been terminated.
The description of the Pinnacle West Facility in this Current Report on Form 8-K is qualified in its entirety by reference to the complete text of the Pinnacle West Facility, a copy of which is filed as Exhibit 10.1 hereto and is incorporated by reference.

APS Facility
On April 10, 2023, APS entered into a five-year unsecured revolving credit facility (the “APS Facility”) with Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, Mizuho Bank, Ltd., as Co-Syndication Agent, Co-Sustainability Structuring Agent and Issuing Bank, Wells Fargo Bank, National Association, as Co-Syndication Agent and Issuing Bank, Bank of America, N.A., JPMorgan Chase Bank, N.A., MUFG Bank, Ltd., PNC Bank, National Association, and Truist Bank, as Co-Documentation Agents and Issuing Banks, the other lender parties thereto, allowing APS to borrow, repay and reborrow, from time to time, up to $1.25 billion through April 10, 2028.
Also, on April 10, 2023, APS terminated its two prior unsecured revolving credit facilities (together, the “Prior APS Facilities”), each for $500 million and each with Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, Mizuho Bank, Ltd., as Syndication Agent, Co-Sustainability Structuring Agent and Issuing Bank, Bank of America, N.A., BNP Paribas, JPMorgan Chase Bank, N.A., MUFG Union Bank, N.A., Truist Bank and Wells Fargo Bank, National Association, as Co-Documentation Agents and Issuing Banks, and the other lender parties thereto, which were replaced by the new APS Facility. The Prior APS Facilities each would have expired on May 28, 2026.
APS will use the APS Facility for general corporate purposes, including as a standby facility to support commercial paper issuances. The APS Facility can also be used for letters of credit. Borrowings under the APS Facility will bear interest based on APS’s then-current senior unsecured debt ratings. The APS Facility includes a sustainability-linked pricing metric which permits an interest rate increase or reduction by meeting or missing targets related to specific environmental and employee health and safety sustainability objectives.
Borrowings under the APS Facility are conditioned on APS’s ability to make certain representations at the time each borrowing is made, except for representations concerning no material adverse effect and certain litigation matters, which were made only at the time the APS Facility was entered into. The APS Facility includes customary covenants, including that APS maintain a consolidated debt-to-capitalization ratio no greater than a prescribed level and comply with certain lien restrictions. The APS Facility also includes customary events of default, including a cross default provision and a change of control provision relating to Pinnacle West, the parent company of APS. If an event of default occurs, lenders holding a specified percentage of the commitments, or the agent with such lenders’ consent, may terminate the obligations of the lenders to make loans under the APS Facility and the obligations of the issuing banks to issue letters of credit and may declare the obligations outstanding under the APS Facility to be due and payable.
APS and its affiliates maintain normal banking and other relationships with the agents and various other lenders in the new APS Facility and/or their affiliates, and in the Prior APS Facilities that have been terminated.
The description of the APS Facility in this Current Report on Form 8-K is qualified in its entirety by reference to the complete text of the APS Facility, a copy of which is filed as Exhibit 10.1 hereto and is incorporated by reference.

Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.

Exhibit No. |  | Description
10.1 |  | Second Amended and Restated Five-Year Credit Agreement, dated as of April 10, 2023, among Pinnacle West, as Borrower, Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, and the lenders and other parties thereto
10.2 |  | Five-Year Credit Agreement, dated as of April 10, 2023, among APS, as Borrower, Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, and the lenders and other parties thereto
104 |  | 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

|  | PINNACLE WEST CAPITAL CORPORATION
|  | (Registrant)
Dated: April 10, 2023 |  | By: /s/ Andrew Cooper
|  | Andrew Cooper
|  | Senior Vice President and
|  | Chief Financial Officer
|  | ARIZONA PUBLIC SERVICE COMPANY
|  | (Registrant)
Dated: April 10, 2023 |  | By: /s/ Andrew Cooper
|  | Andrew Cooper
|  | Senior Vice President and
|  | Chief Financial Officer