Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 237

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 237
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 membership interests subject to mandatory redemption.  The proceeds from the secured notes issuance and the issuance of the membership interests were paid to TVA in accordance with the terms of the Southaven head lease.  See Note 12 — Variable Interest Entities — Southaven VIE.  TVA used the proceeds from the transaction primarily to fund the acquisition of the Southaven CCF from SSSL.In January 2012, JSCCG issued secured notes totaling $900 million in aggregate principal amount that bear interest at a rate of 4.626 percent.  Also in January 2012, Holdco issued secured notes totaling $100 million that bear interest at a rate of 7.1 percent.  The JSCCG notes and the Holdco notes require amortizing semi-annual payments on each January 15 and July 15, and mature on January 15, 2042.  The Holdco notes require a $10 million balloon payment upon maturity.  See Note 12 — Variable Interest Entities — John Sevier VIEs.  TVA used the proceeds from the transaction to meet its requirements under the TVA Act.  Secured debt of VIEs, including current maturities, outstanding at September 30, 2025 and 2024 totaled $1.7 billion and $934 million, respectively.Short-Term Debt    The following table provides information regarding TVA's short-term borrowings:Short-Term BorrowingsAt September 30 20252024Gross amount outstanding - discount notes (in millions)$— $1,168 Weighted average interest rate - discount notes— %4.76 %Put OptionsTVA has two issues of Putable Automatic Rate Reset Securities ("PARRS") outstanding.  After a fixed-rate period of five years, the coupon rate on the PARRS may automatically be reset downward under certain market conditions on an annual basis.  The coupon rate reset on the PARRS is based on a calculation.  For both series of PARRS, the coupon rate will reset downward on the reset date if the rate calculated is below the then-current coupon rate on the Bond.  The calculation dates, potential reset dates, and terms of the calculation are different for each series.  The coupon rate on the 1998 Series D PARRS may be reset on June 1 (annually) if the sum of the five-day average of the 30-Year Constant Maturity Treasury ("CMT") rate