Company: EAI
Filing Date: 2025-08-06
Form Type: S-3ASR
Source: 0001193125-25-174487
Chunk: 108

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-08-06
Form: S-3ASR
Chunk 108
---
 include, among other things, electric, gas, steam or hot water property acquired after December 31, 1943. 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. As of June 30, 2025, we could have issued approximately $2,792 million principal amount of additional first mortgage bonds on the basis of retired first mortgage bonds, and we had approximately $956 million of unfunded property additions, entitling us to issue approximately $764 million principal amount of first mortgage bonds on the basis of unfunded property additions. 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 any consent or other action by holders of any first mortgage bonds to include nuclear fuel, and similar or analogous devices or substances, as property additions. We also have the right to amend the mortgage at any time without any consent or other action of the holders of any first mortgage 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. 7

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 We may release property from the lien of the mortgage on the bases of:

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

| 2. | property additions, after adjustments in certain cases to offset retirements and after making adjustments for 
 qualified lien bonds, if any, outstanding against property additions; and                                     |

| 3. | (i) the aggregate principal amount of first mortgage bonds that we would be entitled to issue on the basis of                                                                                                                                       
 retired qualified lien bonds; or (ii) 10/6ths of the aggregate principal amount of first mortgage bonds