Oncor Electric: Issues $1.8B Senior Secured Notes; Ends Revolving Credit

What Happened
On September 11, 2026, Oncor Electric Delivery Company LLC announced it sold $800 million of 5.65% Senior Secured Notes due 2036 and $1.0 billion of 6.35% Senior Secured Notes due 2066 (together, ~$1.8B in Notes). Net proceeds of approximately $1.78 billion were used for general corporate purposes, including repaying outstanding borrowings: the $625 million term loan, $480 million under its 2024 Revolving Credit Agreement, $375 million under a receivables securitization facility, and outstanding commercial paper. Following repayment, the 2024 Credit Agreement (a $500 million revolver that would have expired Feb 2027) and related commitments were terminated at Oncor’s option.

Key Details

• Notes issued on September 11, 2026: $800M at 5.65% due Sept 15, 2036; $1.0B at 6.35% due Sept 15, 2066.
• Interest accrues from issuance and is payable semi‑annually (March 15 and Sept 15), starting March 15, 2027.
• Notes are secured by a lien on Oncor’s transmission and distribution property under the Deed of Trust; governed by an Indenture with BNY Mellon as trustee.
• Redemption: make‑whole redemption prior to specified dates (June 15, 2036 for 2036 Notes; March 15, 2066 for 2066 Notes); callable at par thereafter.
• Registration Rights Agreement: Oncor must file an exchange or shelf registration (use commercially reasonable efforts to have exchange offer registration effective by Dec 31, 2027 and consummated by Feb 15, 2028). Failure to timely register can increase affected Notes’ interest by 0.50% (for up to two years).
• Notes were sold to qualified institutional buyers (Rule 144A) and to non‑U.S. persons under Regulation S.

Why It Matters
This 8‑K describes a refinancing and liquidity move that replaces shorter‑term and committed credit lines with long‑dated secured debt. For investors, the issuance lengthens Oncor’s debt maturities and funds repayment of several facilities (reducing near‑term refinancing needs and commercial paper outstanding). However, the Notes are secured by utility property (adding collateralized debt on the capital structure), carry fixed interest rates of 5.65% and 6.35%, and include registration‑related additional interest if Oncor misses its filing obligations — all factors that affect credit profile, cash interest costs, and future refinancing flexibility.