v3.26.1
Short-Term and Long-Term Borrowings
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Short-Term and Long-Term Borrowings Short-Term and Long-Term Borrowings
Short-Term Debt
The following is a summary of our lines of credit as of March 31, 2026 and December 31, 2025:
March 31, 2026December 31, 2025
(in thousands)Borrowing LimitAmount OutstandingLetters
of Credit		Amount AvailableAmount Available
OTC Credit Agreement$170,000 $— $— $170,000 $170,000 
OTP Credit Agreement220,000 67,971 11,514 140,515 149,297 
Total Short-Term Debt
$390,000 $67,971 $11,514 $310,515 $319,297 
Borrowings under each credit facility are subject to a variable rate of interest on outstanding balances and a commitment fee is charged based on the average unused amount available to be drawn under the respective facility. The variable rate of interest to be charged is based on a benchmark interest rate, either the Secured Overnight Financing Rate (SOFR) or a Base Rate, as defined in the credit agreements, selected by the borrower at the time of an advance, subject to the conditions of each agreement, plus an applicable credit spread. The credit spread ranges from zero to 2.00%, depending on the benchmark interest rate selected, and is subject to adjustment based on the credit ratings of the relevant borrower. The weighted-average interest rate on all outstanding borrowings as of March 31, 2026 and December 31, 2025 was 5.53% and 5.08%.
Letters of Credit
As of March 31, 2026, we had a total of $15.1 million of unused letters of credit outstanding, including the amounts issued under our credit facilities.
Long-Term Debt
The following is a summary of outstanding long-term debt by borrower as of March 31, 2026 and December 31, 2025: 
(in thousands)
BorrowerDebt InstrumentRateMaturityMarch 31,
2026		December 31,
2025
OTCGuaranteed Senior Notes3.55 %12/15/26$80,000 $80,000 
OTPSeries 2007C Senior Unsecured Notes6.37 %08/02/2742,000 42,000 
OTPSeries 2013A Senior Unsecured Notes4.68 %02/27/2960,000 60,000 
OTPSeries 2019A Senior Unsecured Notes3.07 %10/10/2910,000 10,000 
OTPSeries 2020A Senior Unsecured Notes3.22 %02/25/3010,000 10,000 
OTPSeries 2020B Senior Unsecured Notes3.22 %08/20/3040,000 40,000 
OTPSeries 2021A Senior Unsecured Notes2.74 %11/29/3140,000 40,000 
OTPSeries 2024A Senior Unsecured Notes5.48 %04/01/3460,000 60,000 
OTPSeries 2025A Senior Unsecured Notes5.49 %03/27/3550,000 50,000 
OTPSeries 2026A Senior Unsecured Notes5.33 %03/19/36100,000 — 
OTPSeries 2007D Senior Unsecured Notes6.47 %08/20/3750,000 50,000 
OTPSeries 2019B Senior Unsecured Notes3.52 %10/10/3926,000 26,000 
OTPSeries 2020C Senior Unsecured Notes3.62 %02/25/4010,000 10,000 
OTPSeries 2013B Senior Unsecured Notes5.47 %02/27/4490,000 90,000 
OTPSeries 2018A Senior Unsecured Notes4.07 %02/07/48100,000 100,000 
OTPSeries 2019C Senior Unsecured Notes3.82 %10/10/4964,000 64,000 
OTPSeries 2020D Senior Unsecured Notes3.92 %02/25/5015,000 15,000 
OTPSeries 2021B Senior Unsecured Notes3.69 %11/29/51100,000 100,000 
OTPSeries 2022A Senior Unsecured Notes3.77 %05/20/5290,000 90,000 
OTPSeries 2024B Senior Unsecured Notes5.77 %04/01/5460,000 60,000 
OTPSeries 2025B Senior Unsecured Notes5.98 %06/05/5550,000 50,000 
Total Long-Term Debt
1,147,000 1,047,000 
Less:Current Maturities, Net of Unamortized Debt Issuance Costs79,964 79,951 
Less:Unamortized Long-Term Debt Issuance Costs3,872 3,483 
Total Long-Term Debt, Net of Unamortized Debt Issuance Costs$1,063,164 $963,566 
On March 19, 2026, OTP entered into a Note Purchase Agreement pursuant to which OTP issued, in a private placement transaction, $170.0 million of senior unsecured notes consisting of (a) $100.0 million of 5.33% Series 2026A Senior Unsecured Notes due March 19, 2036, and (b) $70.0 million of 6.04% Series 2026B Senior Unsecured Notes due June 4, 2056. The Series 2026A Notes were issued on March 19, 2026, upon entering into the agreement. The Series 2026B Notes are expected to be issued on June 4, 2026, subject to the satisfaction of certain customary conditions to closing.
Pursuant to the terms of the agreement, OTP may prepay all or any portion of the notes (in an amount not less than 10% of the aggregate principal amount of the notes then outstanding in the case of a partial prepayment) at 100% of the principal amount so prepaid, together with unpaid accrued interest and a make-whole amount, as defined in the agreement; provided that no default or event of default exists under the agreement. Any prepayment of the Series 2026A Notes then outstanding on or after December 19, 2035, or the Series 2026B Notes then outstanding on or after December 4, 2055, will be made without any make-whole amount. Consistent with other of our borrowings, the agreement contains a number of restrictions on the business of OTP, including restrictions and limitations on OTP’s ability to merge, sell substantially all assets, create or incur liens on assets, guarantee the obligations of any other party and engage in certain transactions with affiliates.
Financial Covenants
Certain of OTC's and OTP's short- and long-term debt agreements require the borrower, whether OTC or OTP, to maintain certain financial covenants, including a maximum debt to total capitalization ratio of 0.60 to 1.00 or 0.65 to 1.00, depending on the debt agreement, a minimum interest and dividend coverage ratio of 1.50 to 1.00, and a maximum level of priority indebtedness. As of March 31, 2026, OTC and OTP were in compliance with these financial covenants.