Debt and Other Obligations

3 Months Ended

Dec. 31, 2012

Debt Outstanding

Total debt outstanding at December 31, 2012, and September 30, 2012, consisted of the following:



Debt Outstanding
	At December 31, 2012			At September 30, 2012
Short-term debt
Short-term debt, net	$	1,000		$	1,507
Current maturities of long-term debt of variable interest entities	13			13
Current maturities of power bonds	2,324			2,308
Total current debt outstanding, net	3,337			3,828
Long-term debt
Long-term debt of variable interest entities	981			981
Long-term power bonds	21,307			20,330
Unamortized discounts, premiums and other	(85		)	(61		)
Total long-term debt, net	22,203			21,250
Total outstanding debt	$	25,540		$	25,078

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2012, to December 31, 2012.



Debt Securities Activity
	Date	Amount			Interest Rate

Issues
2012 Series B⁽¹⁾	December 2012	$	1,000		3.50	%
Discount on debt issues		$	(25	)
Total long-term debt issuances		$	975

Redemptions/Maturities⁽²⁾
2009 Series A	November 2012	$	2		2.25	%
2009 Series B	December 2012	1			3.77	%
electronotes^®	First Quarter 2013	8			4.91	%
Total redemptions/maturities		$	11

Notes

(1) The 2012 Series B bonds were issued at 97.49 percent of par.

(2) All redemptions were at 100 percent of par.

Credit Facility Agreements. TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for fiscal year 2013 with a maturity date of September 30, 2013. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA plans to use the U.S. Treasury credit facility as a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at December 31, 2012 or September 30, 2012.

TVA also has funding available in the form of three long-term revolving credit facilities totaling $2.5 billion. The $0.5 billion credit facility matures on January 14, 2014, one $1.0 billion credit facility matures on June 25, 2017, and the other $1.0 billion credit facility matures on December 13, 2017. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured long-term non-credit enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.5 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured long-term non-credit enhanced debt. At December 31, 2012, there were $1.1 billion of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 13 — Other Derivative Instruments — Collateral.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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