Oncor Electric Delivery Company LLC reported the completion of a public offering of senior secured notes on September 11, 2026. The company sold $800 million aggregate principal amount of 5.65% Senior Secured Notes due 2036 and $1 billion aggregate principal amount of 6.35% Senior Secured Notes due 2066. The total proceeds from the sale, net of discounts and fees, were approximately $1.78 billion.
Oncor utilized the net proceeds to repay existing debt obligations. Specifically, the company paid off $625 million in borrowings under its $1.4 billion term loan credit facility, $480 million under its 2024 Credit Agreement, $375 million under its revolving accounts receivables securitization facility, and outstanding commercial paper notes.
The notes were issued pursuant to an Indenture dated August 1, 2002, with The Bank of New York Mellon Trust Company, N.A., acting as trustee. The obligations are secured by a lien on the company's transmission and distribution property. Interest on the 2036 Notes is 5.65% per annum, payable semi-annually on March 15 and September 15, beginning March 15, 2027. The 2066 Notes bear interest at 6.35% per annum, with the same payment schedule.
Both note series mature on September 15 of their respective years, with the 2036 Notes maturing on September 15, 2036, and the 2066 Notes maturing on September 15, 2066. The company has the right to redeem the notes in whole or in part at 100% of the principal amount plus accrued interest, subject to specific timing requirements for each series.
In connection with the sale, Oncor entered into a Registration Rights Agreement with the initial purchasers. The agreement requires the company to file a registration statement to allow for an exchange of the notes for publicly registered notes by December 31, 2027, and to consummate the exchange offer by February 15, 2028.
