Company: EAI
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000065984-25-000012
Chunk: 371

Company: ENTERGY ARKANSAS, LLC
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7
Chunk 371
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 Financial Discussion and Analysis

Long-term debt, including the currently maturing portion, makes up most of Entergy’s total debt outstanding.  Following are Entergy’s long-term debt principal maturities and estimated interest payments as of December 31, 2024.  To estimate future interest payments for variable rate debt, Entergy used the rate as of December 31, 2024.  The amounts below include payments on System Energy’s Grand Gulf sale-leaseback transaction, which are included in long-term debt on the balance sheet.

Long-term debt maturities and estimated interest payments2025202620272028-2029after 2029 (In Millions)Utility$1,535 $2,540 $1,927 $3,490 $29,370 Parent & Other917 855 90 810 5,669 Total$2,452 $3,395 $2,017 $4,300 $35,039 

See Note 5 to the financial statements for further details of long-term debt.

Entergy Corporation has in place a credit facility that has a borrowing capacity of $3 billion and expires in June 2029.  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.  The estimated interest rate for the year ended December 31, 2024 that would have been applied to outstanding borrowings under the facility was 5.96%.  The following is a summary of the amounts outstanding and capacity available under the credit facility as of December 31, 2024:

Capacity BorrowingsLetters of CreditCapacity Available(In Millions)$3,000$—$3$2,997

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 Sub