Entergy and subsidiaries enter into $4.15 billion of credit facilities

By Marisa Wong

Madison, Wis., March 14 - Entergy Corp. and four of its subsidiaries entered into individual credit agreements on March 9, 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, Mizuho Corporate Bank, Ltd., Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ, Ltd. and Union Bank, NA 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 March 9, 2017 and may be extended in one-year increments no more than two times.

Interest is variable and currently equals 2.14%. There is a variable commitment fee, which is currently 0.275%. The commitment fee and interest rate fluctuate depending on Entergy's senior unsecured debt rating.

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

As of March 9, there were $1,605,000,000 of loans outstanding and $8 million of letters of credit issued under the Entergy agreement.

Proceeds were used to repay the amounts outstanding under Entergy's previous $3.5 billion credit facility dated Aug. 2, 2007, which was terminated on the closing date of the new facility.

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 March 9, 2017 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 0.225%.

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

Entergy Gulf States facility

Entergy Gulf States Louisiana LLC entered into a five-year $150 million unsecured revolving credit facility, with $75 million available for letters of credit.

The facility matures on March 9, 2017 and may be extended in one-year increments up to two times.

Interest and the commitment fee are variable and depend on Entergy Gulf States Louisiana's senior unsecured debt rating. The commitment fee is initially 0.225%.

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

On March 9 Entergy Gulf States Louisiana terminated its previous $100 million credit facility dated Aug. 2, 2007.

Entergy Louisiana

Entergy Louisiana LLC obtained a five-year $200 million unsecured revolving credit facility, with $100 million of the facility available for the issuance of letters of credit.

Borrowings are payable on March 9, 2017. 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 0.225%.

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

Entergy Louisiana terminated its previous $200 million credit facility dated Aug. 2, 2007 on the closing date of the new facility.

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.

Borrowings under the facility mature on March 9, 2017. 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 0.275%.

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

In connection with new credit agreement, Entergy Texas terminated its previous $100 million credit facility dated Aug. 2, 2007 on March 9.

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