Item 1.01 Entry into a Material Definitive Agreement.

Issuance of First Mortgage Bonds

On November 30, 2012, Avista Corp. issued $80.0 million of 4.23 percent First Mortgage Bonds due in 2047 under a bond purchase agreement with certain institutional investors in the private placement market. The new First Mortgage Bonds were issued under and in accordance with the Mortgage and Deed of Trust, dated as of June 1, 1939, from the Company to Citibank, N.A., trustee, as amended and supplemented by various supplemental indentures and other instruments.

The total net proceeds from the sale of the new bonds were used to repay a portion of the borrowings outstanding under the Company's $400.0 million committed line of credit.

The bonds have not been, and will not be, registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

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 issuance of $80.0 million of 4.23 percent First Mortgage Bonds due in 2047 under Item 1.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

4.1 Fifty-Fourth Supplemental Indenture, dated as of November 1, 2012.

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