Company: EAI
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0000065984-25-000087
Chunk: 274

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 7
Chunk 274
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  REVOLVING CREDIT FACILITIES, LINES OF CREDIT, SHORT-TERM BORROWINGS, AND LONG-TERM DEBT (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy)

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2030.  The facility includes fronting commitments for the issuance of letters of credit against $20 million of the total borrowing capacity of the credit facility.  The commitment fee is currently 0.225% of the undrawn commitment amount.  Commitment fees and interest rates on loans under the credit facility can fluctuate depending on the senior unsecured debt ratings of Entergy Corporation.  As there were no borrowings under the facility for the six months ended June 30, 2025, the estimated interest rate 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$2,996Entergy 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.  Entergy is 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.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%.

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Table of ContentsEntergy Corporation and SubsidiariesNotes to Financial Statements

Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of June 30, 2025 as follows:CompanyExpirationDateAmount ofFacilityInterest Rate (a)Amount Draw