Entergy, three subsidiaries enter into $4.15 billion credit facilities

By Wendy Van Sickle

Columbus, Ohio, June 3 – Entergy Corp. and three of its subsidiaries entered into individual credit agreements on Thursday, according to an 8-K filing with the Securities and Exchange Commission.

Citibank, NA is the administrative agent and a letter-of-credit issuing bank for all of the facilities. JPMorgan Chase Bank, NA, Wells Fargo Bank, NA, BNP Paribas, Mizuho Bank, Ltd., Bank of Nova Scotia and MUFG Bank, Ltd. are participating banks for each of the facilities.

Entergy’s credit agreement provides a five-year $3.5 billion unsecured revolving credit and letter-of-credit facility, which may be increased up to $4 billion. Of the total amount, $1.75 billion is available for letters of credit.

The facility matures on June 3, 2026 and may be extended in one-year increments no more than two times.

Interest is currently Libor plus 150 basis points. There is a commitment fee, which is currently 22.5 bps. The commitment fee and interest rate fluctuate depending on Entergy’s senior unsecured debt rating. The margin can range from 112.5 bps to 200 bps, and the commitment fee from 12.5 bps to 35 bps.

The credit agreement requires Entergy to maintain a consolidated debt ratio of 65% or less of its total capitalization.

As of June 3, there were $150 million of loans outstanding and $5.85 million of letters of credit issued under the Entergy agreement.

Entergy Arkansas facility

Entergy Arkansas, Inc. entered into a credit agreement that provides a five-year $150 million unsecured revolving credit facility, with $75 million available for the issuance of letters of credit.

The facility is due June 3, 2026 but may be extended in one-year increments up to two times.

Interest and the commitment fee are variable and depend on Entergy Arkansas’ senior unsecured debt rating. The commitment fee is initially 12.5 bps and can range from 7.5 bps to 22.5 bps. The eurodollar margin is initially 112.5 bps and can range from 87.5 bps to 150 bps.

The agreement requires Entergy Arkansas to maintain a consolidated debt ratio of 65% or less of its total capitalization.

No borrowings were outstanding at closing.

Entergy Louisiana

Entergy Louisiana LLC obtained a five-year $350 million unsecured revolving credit facility, with $175 million of the facility available for the issuance of letters of credit. An accordion feature provides for the facility to be increased to up to $425 million.

Borrowings are payable on June 3, 2026. The term of the facility may be extended in one-year increments no more than two times.

Interest and the commitment fee are variable and depend on Entergy Louisiana’s senior unsecured debt rating.

The commitment fee is initially 12.5 bps and can range from 7.5 bps to 22.5 bps. The eurodollar margin is initially 112.5 bps and can range from 87.5 bps to 150 bps.

The facility requires Entergy Louisiana to maintain a consolidated debt ratio of 65% or less of its total capitalization.

No borrowings were outstanding at closing.

Entergy Texas facility

Entergy Texas, Inc.’s credit agreement provides for a five-year $150 million unsecured revolving credit, with $75 million available for the issuance of letters of credit. An accordion feature provides for the facility to be increased to up to $175 million.

Borrowings under the facility mature on June 3, 2026. The facility may be extended in one-year increments up to two times.

Interest and the commitment fee are variable and depend on Entergy Texas’ senior unsecured debt rating. The commitment fee is initially 22.5 bps and can range from 12.5 bps to 35 bps. The eurodollar margin is initially 150 bps and can range from 112.5 bps to 200 bps.

The facility requires Entergy Texas to maintain a consolidated debt ratio of 65% or less of its total capitalization.

No borrowings were outstanding and $1,256,00 of letters of credit were outstanding at closing.

Entergy is an integrated energy company based in New Orleans.

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