Company: EAI
Filing Date: 2025-08-06
Form Type: S-3ASR
Source: 0001193125-25-174487
Chunk: 137

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-06
Form: S-3ASR
Chunk 137
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 property acquired after December 31, 1987. Securities, automobiles, vehicles or aircraft, or property used principally for the production or gathering of natural gas, are not included as property additions. Deposited cash may be withdrawn upon the bases stated in clause (1) or (2) above. As of June 30, 2025, we could have issued approximately $714 million principal amount of first mortgage bonds on the basis of retired first mortgage bonds, and we had approximately $959 million of unfunded property additions, entitling us to issue approximately $671 million principal amount of first mortgage bonds on the basis of property additions. Such amounts will be affected by the issuance of any additional first mortgage bonds, including the New Bonds, and the retirement of existing first mortgage bonds with the proceeds of the New Bonds. New Bonds in a greater amount may also be issued for the refunding of outstanding first mortgage bonds. The mortgage contains restrictions on the issuance of first mortgage bonds against property subject to liens. There is no “earnings” or similar test required under the mortgage as a condition to the issuance of first mortgage bonds under the mortgage. 6

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 Substitution of Property Property may be released from the lien of the mortgage on the following bases:

| 1. | the deposit with the trustee of cash or purchase money mortgages; |

| 2. | the lower of cost or fair value to us of unfunded property additions designated by us, after adjustments in                                       
 certain cases to offset retirements and after making adjustments for certain prior lien bonds, if any, outstanding against property additions; or |

| 3. | an amount equal to the principal amount of the retired first mortgage bonds that we elect to use as the basis                              
 for such release times the reciprocal of the bonding ratio in effect at the time such retired first mortgage bonds were originally issued. |

Property owned by us on December 31, 1987, may be released from the lien of the mortgage at its depreciated book value on December 31, 1987; all other property may be released at its cost, as defined in the mortgage. Unfunded property may also be released without complying with clauses (1), (2) or (3) above if, after