Oncor Borrows $325 Million Through Receivables Facility to Bolster Liquidity

The proceeds will help repay outstanding commercial paper and maintain operational flexibility ahead of 2028.

December 03, 2025

Oncor Taps Receivables Facility for $325 Million to Support Corporate Financing

Oncor just added $325 million in new liquidity through a strategic draw from its revolving accounts receivable securitization facility. The funding—executed on November 25, 2025—is already at work, covering general corporate needs, including the repayment of outstanding commercial paper.

This facility is one of Oncor’s core tools for flexible financing. It allows the company to convert retail electric provider receivables into short-term liquidity, all through a structured arrangement involving Oncor Receivables LLC, a bankruptcy-remote, wholly owned subsidiary. This entity holds the receivables and pledges them as collateral to secure loans. MUFG Bank, Ltd. serves as the administrative agent for the lender group.

The setup provides up to $500 million in borrowing capacity, but availability is tied to a dynamic borrowing base calculation. That base adjusts based on the amount and quality of eligible receivables, along with built-in reserve and concentration limits. With this most recent draw, $325 million is currently outstanding.

Term and Extension Options

The AR Facility gives Oncor flexibility through April 2028 , unless earlier termination is triggered either by the lenders or by Oncor Receivables LLC itself. Oncor also has the option to extend the facility in one-year increments, subject to lender consent, providing additional leeway to adjust over time.

Interest Structure and Fee Terms

Interest costs depend on how the loans are funded. If conduit lenders provide the capital, the rate reflects their commercial paper issuance cost, plus related expenses. If committed lenders fund the draw, interest is tied to one-month term SOFR, plus a 0.10% margin. On top of that, Oncor Receivables LLC pays standard usage and commitment fees—ensuring the facility stays active and available without excess cost.

Risk Structure and Legal Isolation

The structure is built to isolate credit exposure. Oncor Receivables LLC is a separate legal entity with its own creditors, who have first claim on its assets in a wind-down scenario. This protects Oncor’s broader operations while ensuring the receivables-backed loans remain fully secured.

Strategic Implications

This move strengthens Oncor’s financial position heading into 2026. By locking in stable liquidity and retiring short-term debt, the company gains more room to maneuver—whether that’s addressing near-term obligations or positioning for longer-term capital planning.