Company: EAI
Filing Date: 2025-08-06
Form Type: S-3ASR
Source: 0001193125-25-174487
Chunk: 42

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-06
Form: S-3ASR
Chunk 42
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 1. | 60% of the cost or fair value, whichever is less, of unfunded property additions after adjustments to offset 
 retirements;                                                                                                 |

| 2. | retirements of first mortgage bonds or qualified lien bonds; or |

| 3. | deposit of cash with the corporate trustee. |

Property additions generally include, among other things, electric, gas, steam or hot water property acquired after June 30, 1944. Securities, automobiles or other vehicles or aircraft, or property used principally for the production or gathering of natural gas, are not included as property additions. 6

As of June 30, 2025, we had approximately $1,241 million of unfunded property additions, entitling us to issue approximately $745 million principal amount of first mortgage bonds on the basis of property additions, and we could have issued approximately $1,023 million principal amount of first mortgage bonds on the basis of retired first mortgage bonds. Such amount will be affected by the issuance of any additional first mortgage bonds, including the New Bonds, and the retirement of existing bonds with the proceeds of the New Bonds. There is no “earnings” or similar test required under the mortgage as a condition to the issuance of first mortgage bonds under the mortgage. We have the right to amend the mortgage at any time without the consent or other action of the holders of any of the New Bonds to permit the issuance of first mortgage bonds on the basis of 80% of the cost or fair value, whichever is less, of unfunded property additions after adjustments to offset retirements. We have the right to amend the mortgage at any time without any consent or other action of the holders of any of the New Bonds to make any form of space satellites including solar power satellites, space stations and other analogous facilities available as property additions. No first mortgage bonds may be issued on the basis of property additions subject to qualified liens if the qualified lien bonds secured thereby exceed 50% of such property additions, or if the qualified lien bonds and first mortgage bonds then outstanding which have been issued against property additions subject to continuing qualified liens and certain other items would in the aggregate exceed 15% of the first mortgage bonds and qualified lien bonds outstanding. Other than the security afforded by the lien of the mortgage and restrictions on the issuance of additional first mortgage bonds described above, there are no provisions of the mortgage that grant the holders of the first mortgage bonds protection in the event of a highly-leveraged transaction involving us. Release and