ONCOR ELECTRIC DELIVERY CO LLC 8-K

What Happened
On June 24, 2026, Oncor Electric Delivery Co LLC announced it completed a sale of A$750 million aggregate principal amount of 5.70% Senior Secured Notes due June 24, 2033. Oncor converted its Australian dollar payment obligations to a fixed-rate U.S. dollar exposure at issuance via cross-currency swaps, producing an all-in U.S. dollar fixed coupon of 5.172%. Net proceeds of about A$743 million (approximately US$525 million using a spot rate of A$1.00 = US$0.7062) will be used for general corporate purposes, including repaying commercial paper.

Key Details

• Issue size: A$750,000,000 senior secured notes due June 24, 2033; stated coupon 5.70% p.a.; interest payable semi-annually on June 24 and December 24, starting December 24, 2026.
• Currency and hedging: Notes denominated in AUD; Oncor entered cross-currency swaps to effectively fix U.S. dollar interest/principal exposure; all-in USD fixed-rate coupon = 5.172%.
• Use of proceeds: Net proceeds ~A$743M (≈US$525M) for general corporate purposes, including repayment of commercial paper.
• Security and program: Notes secured by a lien on Oncor’s transmission and distribution property under the Deed of Trust (dated May 15, 2008) with BNY Mellon Trust Company, N.A. as collateral agent; issued under an A$ Note Issuance Program established June 11, 2026.
• Redemption and default: Callable before March 24, 2033 at 100% plus make-whole; callable on/after March 24, 2033 at 100% of principal plus accrued interest; customary events of default apply. Notes were sold outside the U.S. under Regulation S.

Why It Matters
This filing shows Oncor raised long-term secured debt in the Australian wholesale market and hedged currency risk to lock in a U.S. dollar cost of funds. For investors, the transaction affects Oncor’s debt profile and liquidity use (including commercial paper repayment), and adds a secured liability (backed by transmission/distribution assets) maturing in 2033. The cross-currency swaps reduce exposure to AUD/USD moves but introduce derivative counterparty considerations consistent with ordinary treasury management.