TVA Reports Material Definitive Agreement

TL;DR

TVA signed a big deal on Oct 2nd, could be a new loan or financial obligation.

AI Summary

On October 2, 2024, the Tennessee Valley Authority (TVA) entered into a material definitive agreement related to a direct financial obligation. The filing does not specify the counterparty or the exact financial terms of this obligation, but it is classified as a significant event requiring immediate disclosure.

Why It Matters

This filing indicates a significant financial commitment or obligation for the Tennessee Valley Authority, which could impact its financial standing and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting a potentially significant financial event for TVA.

Key Players & Entities

• Tennessee Valley Authority (company) — Registrant
• October 2, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $80,000,000 — d cash equity to JACTG in the amount of $80,000,000 on the Closing Date. In addition, JACTG
• $720,000,000 — ate in an aggregate principal amount of $720,000,000. Of the $800,000,000 raised by JACTG, J
• $800,000,000 — rincipal amount of $720,000,000. Of the $800,000,000 raised by JACTG, JACTG paid $775,087,07
• $775,087,079 — 800,000,000 raised by JACTG, JACTG paid $775,087,079 to TVA on the Closing Date under the He
• $24,912,921 — nd the CMA, and deposited the remaining $24,912,921 with a lease indenture trustee. The lea

Filing Documents

• tve-20241002.htm (8-K) — 35KB
• johnsonvillebasicleaserent.htm (EX-99.1) — 51KB
• tve-20241002_g1.jpg (GRAPHIC) — 59KB
• 0001376986-24-000026.txt ( ) — 378KB
• tve-20241002.xsd (EX-101.SCH) — 2KB
• tve-20241002_def.xml (EX-101.DEF) — 14KB
• tve-20241002_lab.xml (EX-101.LAB) — 24KB
• tve-20241002_pre.xml (EX-101.PRE) — 14KB
• tve-20241002_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. On October 2, 2024 (the "Closing Date"), TVA entered into a lease-purchase transaction involving its Johnsonville Aeroderivative Combustion Turbine Facility (the "Facility") located in Humphreys County, Tennessee. The Facility consists of ten combustion turbine generators and associated balance-of-plant systems and equipment and will use natural gas as fuel. The Facility is expected to begin commercial operations by April 2025. In connection with this transaction, TVA entered into three material definitive agreements on the Closing Date with Johnsonville Aeroderivative Combustion Turbine Generation LLC, a single-purpose Delaware limited liability company ("JACTG"): a Head Lease Agreement (the "Head Lease") (the United States of America is also a party to this agreement), a Facility Lease-Purchase Agreement (the "Facility Lease"), and a Construction Management Agreement (the "CMA"). Each of these agreements is described in more detail below. Head Lease. Under the Head Lease, TVA will lease the Facility to JACTG for a term of fifty years. In exchange, JACTG made a one-time rental payment to TVA on the Closing Date. The Head Lease, however, will terminate sooner (upon the expiration of the Facility Lease) so long as (1) all payments under the Facility Lease have been made, and (2) there is no significant lease event of default for which JACTG has exercised remedies to dispossess TVA of the Facility. Facility Lease. Under the Facility Lease, TVA will lease the Facility back from JACTG for a term of thirty years. TVA will make rental payments to JACTG on each April 1 and October 1, commencing on April 1, 2025, and ending on October 1, 2054. The amount of rent payable on each rent payment date is listed in a schedule attached to this report as Exhibit 99.1, which schedule is incorporated herein by reference. These rent payments may be accelerated (1) immediately upon (a) the occurrence of a bankruptcy event (to

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. EXHIBIT NO. DESCRIPTION OF EXHIBIT 99.1 Schedule of Amount of Rent Payable on Each Rent Payment Date Under the Facility Lease-Purchase Agreement Dated as of October 2, 2024, Between Johnsonville Aeroderivative Combustion Turbine Generation LLC and TVA

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Tennessee Valley Authority (Registrant) Date: October 4, 2024 /s/ John M. Thomas, III John M. Thomas, III Executive Vice President and Chief Financial and Strategy Officer EXHIBIT INDEX This exhibit is filed pursuant to Items 1.01 and 2.03 hereof. EXHIBIT NO. DESCRIPTION OF EXHIBIT 99.1 Schedule of Amount of Rent Payable on Each Rent Payment Date Under the Facility Lease-Purchase Agreement Dated as of October 2 , 20 24 , Between John sonville Aeroderivative Combustion Turbine Generation LLC and TVA

View Full Filing

View this 8-K filing on SEC EDGAR