Material Agreement · New Debt / Obligation

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549   FORM 8-K   CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): December 14, 2022     AVISTA CORPORATION (Exact name of Registrant as Specified in Its Charter)     Washington 001-03701 91-0462470 (State or Other Jurisdiction of Incorporation) (Commission File Number) (IRS Employer Identification No.)           1411 East Mission Avenue   Spokane , Washington   99202-2600 (Address of Principal Executive Offices)   (Zip Code)   Registrant’s Telephone Number, Including Area Code: 509 489-0500     (Former Name or Former Address, if Changed Since Last Report)   Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: ☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) ☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) ☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) ☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to Section 12(b) of the Act: Title of each class   Trading Symbol(s)   Name of each exchange on which registered Common Stock   AVA   The New York Stock Exchange Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐     Section 1 – Registrant's Business and Operations Item 1.01 Entry into a Material Definitive Agreement. In December 2022, Avista Corporation (Avista Corp. or the Company) has seen natural gas and power prices spike 5 to 8 times higher than normal, which has led to increased liquidity needs for purchases of physical commodities as well as significant margin calls associated with future commodity activity and hedging arrangements. That, in turn, has placed pressure on the Company's available liquidity. With anticipated cold weather throughout the western United States and the expected volatility in natural gas and power prices for the remainder of the winter, these conditions may persist. On December 14, 2022, the Company entered into a Credit Agreement with U.S. Bank National Association, as Lender and Administrative Agent, and MUFG Bank Ltd. as Lender in an aggregate amount of $100 million with a maturity date of March 30, 2023. The Credit Agreement also includes an option for the Company to request an additional $50 million in principal as part of an uncommitted incremental facility. Loans under this agreement are unsecured and will have a variable annual interest rate determined by either the Secured Overnight Financing Rate or the Alternative Base Rate depending on the type of loan selected by the Company. The Company borrowed the entire initial $100 million available under the agreement. Additionally, on December 15, 2022, the Company entered into the First Amendment of the Credit Agreement dated November 29, 2022 with Keybank National Association, as Lender and Administrative Agent. The amendment increases the existing unsecured revolving credit facility by $50 million, bringing the new total aggregate amount to $100 million, with a maturity date of November 28, 2023. Loans under this agreement are unsecured and will have a variable annual interest rate determined by either the Secured Overnight Financing Rate or the Alternative Base Rate depending on the type of loan selected by the Company. As of December 19, 2022, the Company does not have outstanding borrowings under this facility. Both Credit Agreements contain customary covenants and conditions, including a covenant not to permit the ratio of “consolidated total debt” to “consolidated total capitalization” of Avista Corp. to be greater than 65 percent at any time, and customary events of default, including a Change in Control (as defined in the agreements). The Company will use the borrowings to meet its short-term liquidity obligations and for other general corporate purposes. 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 $100 million Credit Agreement with the option to request an additional $50 million in principal having a variable interest rate maturing on March 30, 2023 and $50 million increase to the existing unsecured revolving credit facility having a variable interest rate maturing on November 28, 2023 under Item 1.01.   Section 9 - Financial Statements and Exhibits Item 9.01 Financial Statements and Exhibits. (d) Exhibits 10.1 Credit Agreement, dated as of December 14, 2022, among Avista Corporation and U.S. Bank National Association, as Lender and Administrative Agent, and MUFG Bank Ltd. as Lender. 10.2 First Amendment, dated as of December 15, 2022, to the Credit Agreement dated as of November 29, 2022 among Avista Corporation and Keybank National Association, as Lender and Administrative Agent. 104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.)     SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.       AVISTA CORPORATION         Date: December 19, 2022 By: /s/ Mark T. Thies       Mark T. Thies Executive Vice President, Chief Financial Officer, and Treasurer