TVA Extends Partnership with Community Banks
KNOXVILLE, Tenn. ― The Tennessee Valley Authority has extended its financial partnership with the local banking community by renewing its $150 million community bank credit facility. Originally established in 2016, this partnership increases TVA’s financial flexibility and supports economic development with regional and community banks that serve in and around TVA’s seven-state service area.
“This partnership with our region’s top financial institutions enables us to strengthen our relationship with the communities we both serve while enhancing TVA’s economic development mission,” said TVA’s Treasurer and Chief Risk Officer, Tammy Wilson. “Several of the banks increased their commitment to the facility, which is a testament to TVA’s credit quality as well as the strength of our banking partners.”
Truist Bank serves as the administrative agent for the lender group and letter of credit issuer. Other lenders in addition to Truist include United Community Bank, Regions Bank, Pinnacle Bank, First Horizon Bank, HomeTrust Bank, First National Bank and SmartBank, which is a new lender to the bank group this year. The amended $150 million credit facility matures Feb. 9, 2024.
“Our purpose at Truist – which is to inspire and build better lives and communities – aligns with the TVA mission and efforts in the Tennessee Valley,” said Christian Corts, regional president for BB&T | SunTrust, now Truist. “We’re pleased to partner with TVA and the entire bank group in helping our communities across the region thrive and grow.”
TVA depends on various sources of liquidity to meet cash needs and contingencies. In addition to cash from operations and proceeds from the issuance of short-term and long-term debt, TVA’s sources of liquidity contain four long-term revolving bank credit facilities, including the $150 million community bank facility.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power companies serving nearly 10 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation.
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