Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 228

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 228
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 as of June 30, 2025 that would have been applied to outstanding borrowings under the facility was 5.93%.  The following is a summary of the amounts outstanding and capacity available under the credit facility as of June 30, 2025:

Capacity BorrowingsLettersof CreditCapacityAvailable(In Millions)$3,000$—$4$2,996

Entergy Corporation’s credit facility includes a covenant requiring Entergy to maintain a consolidated debt ratio, as defined, of 65% or less of its total capitalization.  The calculation of this debt ratio under Entergy Corporation’s credit facility is different than the calculation of the debt to capital ratio above.  Entergy is currently in compliance with the covenant and expects to remain in compliance with this covenant.  If Entergy fails to meet this ratio, or if Entergy Corporation or one of the Registrant Subsidiaries (except Entergy New Orleans and System Energy) defaults on other indebtedness or is in bankruptcy or insolvency proceedings, an acceleration of the Entergy Corporation credit facility’s maturity date may occur.  See Note 4 to the financial statements herein for additional discussion of the Entergy Corporation credit facility and discussion of the Registrant Subsidiaries’ credit facilities.

11

Table of ContentsEntergy Corporation and SubsidiariesManagement’s Financial Discussion and Analysis

Entergy Corporation has a commercial paper program with a Board-approved program limit of $2 billion.  As of June 30, 2025, Entergy Corporation had $459 million of commercial paper outstanding.  The weighted-average interest rate for the six months ended June 30, 2025 was 4.65%.

Equity Issuances and Equity Distribution Program

See “MANAGEMENT’S FINANCIAL DISCUSSION AND ANALYSIS - Liquidity and Capital Resources - Sources of Capital - Equity Issuances and Equity Distribution Program” in the Form 10-K and Note 3 to the financial statements herein for discussion of equity issuances and the equity distribution program.  The following are updates to that discussion.

In March 2025, Entergy marketed an equity offering of 17.8 million shares of Entergy Corporation common stock.  In lieu of issuing equity at the time of the offering, Entergy entered into forward sale agreements with several forward counterparties.  The forward sale agreements require Entergy to, at its election on or prior to September 30, 2026, either (1) physically settle