AVISTA CORPORATION (NASDAQ:AVA) Files An 8-K Entry into a Material Definitive Agreement

On December 15, 2016, Avista Corporation (Avista Corp. or the Company) issued and sold $175.0 million of 3.54 percent first mortgage bonds due in 2051 to a bond purchase agreement with institutional investors in the private placement market. The new first mortgage bonds were issued under and in accordance with the Mortgage and Deed of Trust, dated as of June 1, 1939, from the Company to Citibank, N.A., trustee, as amended and supplemented by various supplemental indentures and other instruments.

In connection with the pricing of the first mortgage bonds in August 2016, the Company cash settled seven interest rate swap contracts (notional aggregate amount of $125.0 million) and paid a total of $54.0 million, which will be amortized as a component of interest expense over the life of the debt.

The total net proceeds from the sale of the new bonds will be used to repay a $70.0 million term loan with a commercial bank that has a maturity date of December 30, 2016 and to repay a portion of the borrowings outstanding under the Company’s $400.0 million committed line of credit.

The bonds have not been, and will not be, registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Section 2 – Financial Information

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

See description of Avista Corp.’s issuance of $175.0 million of 3.54 percent first mortgage bonds due in 2051 under Item 1.01.

Section 9 – Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

4.1 Fifty-ninth Supplemental Indenture, dated as of December 1, 2016.

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