ENTERGY ARKANSAS, LLCEAI
ENTERGY ARKANSAS, LLC Debt Disclosure
REVOLVING CREDIT FACILITIES, LINES OF CREDIT, AND SHORT-TERM BORROWINGS (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. Although there were no borrowings under the facility for the year ended December 31, 2025, the estimated interest rate for the year ended December 31, 2025 that would have been applied to outstanding borrowings under the facility was 5.32%. The following is a summary of the amounts outstanding and capacity available under the credit facility as of December 31, 2025:
| Capacity | Borrowings | Letters of Credit | Capacity 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. 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 December 31, 2025, Entergy Corporation had $637.8 million of commercial paper outstanding. The weighted-average interest rate for the year ended December 31, 2025 was 4.58%.
Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each had credit facilities available as of December 31, 2025 as follows:
| Company | Expiration Date | Amount of Facility | Interest Rate (a) | Amount Drawn as of December 31, 2025 | Letters of Credit Outstanding as of December 31, 2025 | |||||||||||||||||||||||||||
| Entergy Arkansas | April 2026 | $25 million (b) | 5.67% | — | — | |||||||||||||||||||||||||||
| Entergy Arkansas | June 2030 | $300 million (c) | 4.94% | — | — | |||||||||||||||||||||||||||
| Entergy Louisiana | June 2030 | $400 million (c) | 5.07% | — | — | |||||||||||||||||||||||||||
| Entergy Mississippi | June 2030 | $300 million (c) | 4.94% | — | — | |||||||||||||||||||||||||||
| Entergy New Orleans | June 2027 | $25 million (c) | 5.44% | — | — | |||||||||||||||||||||||||||
| Entergy Texas | June 2030 | $300 million (c) | 5.07% | — | $1.1 million | |||||||||||||||||||||||||||
(a)The interest rate is the estimated interest rate as of December 31, 2025 that would have been applied to outstanding borrowings under the facility.
(b)Borrowings under this Entergy Arkansas credit facility may be secured by a security interest in its accounts receivable at Entergy Arkansas’s option.
(c)The credit facility includes fronting commitments for the issuance of letters of credit against a portion of the borrowing capacity of the facility as follows: $5 million for Entergy Arkansas; $15 million for Entergy Louisiana; $5 million for Entergy Mississippi; $10 million for Entergy New Orleans; and $25 million for Entergy Texas.
The commitment fees on the credit facilities range from 0.075% to 0.375% of the undrawn commitment amount for Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy Texas, and of the entire facility amount for Entergy New Orleans. Each of the credit facilities requires the Registrant Subsidiary borrower to maintain a debt ratio, as defined, of 65% or less of its total capitalization. Each Registrant Subsidiary is in compliance with this covenant.
In addition, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas each has one or more uncommitted standby letter of credit facilities as a means to post collateral to support its obligations to MISO and for other purposes. The following is a summary of the uncommitted standby letter of credit facilities as of December 31, 2025:
| Company | Amount of Uncommitted Facility | Letter of Credit Fee | Letters of Credit Issued as of December 31, 2025 (a) | |||||||||||||||||
| Entergy Arkansas | $25 million | 0.78% | $18.3 million | |||||||||||||||||
| Entergy Arkansas | $75 million | 0.50% | $75.0 million | |||||||||||||||||
| Entergy Louisiana | $125 million | 0.78% | $119.1 million | |||||||||||||||||
| Entergy Louisiana | $45 million | 0.50% | $45.0 million | |||||||||||||||||
| Entergy Mississippi | $65 million | 0.78% | $44.4 million (b) | |||||||||||||||||
| Entergy Mississippi | $65 million | 0.50% | $43.0 million | |||||||||||||||||
| Entergy New Orleans | $1 million | 1.625% | $0.5 million | |||||||||||||||||
| Entergy Texas | $150 million | 1.250% | $59.6 million | |||||||||||||||||
| Entergy Texas | $160 million | 1.05% | $— | |||||||||||||||||
(a)As of December 31, 2025, letters of credit posted with MISO covered financial transmission rights exposure of $0.1 million for Entergy Arkansas, $0.8 million for Entergy Louisiana, $0.8 million for Entergy Mississippi, and $0.1 million for Entergy Texas. See Note 15 to the financial statements for discussion of financial transmission rights.
(b)As of December 31, 2025, the letters of credit issued for Entergy Mississippi under this facility include $43.1 million in MISO letters of credit and $1.3 million in non-MISO letters of credit outstanding.
The short-term borrowings of the Registrant Subsidiaries are limited to amounts authorized by the FERC. Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy have FERC-authorized short-term borrowing limits effective through January 2027. The FERC-authorized short-term borrowing limit for Entergy Arkansas is effective through February 2028. In addition to borrowings from commercial banks, these companies may also borrow from the Entergy system money pool and from other internal short-term borrowing arrangements. The money pool is an intercompany cash management program that makes possible intercompany borrowing and lending arrangements, and the money pool and the other internal borrowing arrangements are designed to reduce the Registrant Subsidiaries’ dependence on external short-term borrowings. Borrowings from internal and external short-term borrowings combined may not exceed the FERC-authorized limits. The following are the FERC-authorized limits for short-term borrowings and the outstanding short-term borrowings as of December 31, 2025 (aggregating both internal and external short-term borrowings) for the Registrant Subsidiaries:
| Authorized | Borrowings | ||||||||||
| (In Millions) | |||||||||||
| Entergy Arkansas | $250 | $— | |||||||||
| Entergy Louisiana | $450 | $— | |||||||||
| Entergy Mississippi | $200 | $— | |||||||||
| Entergy New Orleans | $150 | $— | |||||||||
| Entergy Texas | $200 | $— | |||||||||
| System Energy | $200 | $16 | |||||||||
Vermont Yankee Credit Facility (Entergy Corporation)
In January 2019, Entergy Nuclear Vermont Yankee was transferred to NorthStar and its credit facility was assumed by Entergy Assets Management Operations, LLC (formerly Vermont Yankee Asset Retirement, LLC), Entergy Nuclear Vermont Yankee’s parent company that remains an Entergy subsidiary after the transfer. In December 2024, Entergy repaid the total $139 million of cash borrowings outstanding under the facility, and the facility was subsequently terminated.
Variable Interest Entities (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, and System Energy)
See Note 17 to the financial statements for a discussion of the consolidation of the nuclear fuel company variable interest entities (VIEs). To finance the acquisition and ownership of nuclear fuel, the nuclear fuel company VIEs have credit facilities and three of the four VIEs also issue commercial paper, details of which follow as of December 31, 2025:
| Company | Expiration Date | Amount of Facility | Weighted-Average Interest Rate on Borrowings (a) | Amount Outstanding as of December 31, 2025 | ||||||||||||||||||||||
| (Dollars in Millions) | ||||||||||||||||||||||||||
| Entergy Arkansas VIE | June 2027 | $80 | 5.34% | $13.7 | ||||||||||||||||||||||
| Entergy Louisiana River Bend VIE | June 2027 | $105 | 5.36% | $50.3 | ||||||||||||||||||||||
| Entergy Louisiana Waterford VIE | June 2027 | $105 | 5.36% | $43.7 | ||||||||||||||||||||||
| System Energy VIE | June 2027 | $120 | 5.37% | $36.4 | ||||||||||||||||||||||
(a)Includes letter of credit fees and bank fronting fees on commercial paper issuances by the nuclear fuel company VIEs for Entergy Arkansas, Entergy Louisiana, and System Energy. The nuclear fuel company
VIE for Entergy Louisiana River Bend does not issue commercial paper, but borrows directly on its bank credit facility.
The commitment fees on the credit facilities are 0.100% of the undrawn commitment amount for the Entergy Arkansas, Entergy Louisiana, and System Energy nuclear fuel company VIEs. Each credit facility requires the respective lessee of nuclear fuel (Entergy Arkansas, Entergy Louisiana, or Entergy Corporation as guarantor for System Energy) to maintain a consolidated debt ratio, as defined, of 70% or less of its total capitalization. Each lessee is in compliance with this covenant.
The nuclear fuel company VIEs had notes payable that were included in debt on the respective balance sheets as of December 31, 2025 as follows:
| Company | Description | Amount | ||||||||||||
| Entergy Arkansas VIE | 1.84% Series N due July 2026 | $90 million | ||||||||||||
| Entergy Arkansas VIE | 5.54% Series O due May 2029 | $70 million | ||||||||||||
| Entergy Louisiana River Bend VIE | 2.51% Series V due June 2027 | $70 million | ||||||||||||
| Entergy Louisiana Waterford VIE | 5.94% Series J due September 2026 | $70 million | ||||||||||||
| System Energy VIE | 2.05% Series K due September 2027 | $90 million | ||||||||||||
In accordance with regulatory treatment, interest on the nuclear fuel company VIEs’ credit facilities, commercial paper, and long-term notes payable is reported in fuel expense.
In January 2026, the System Energy nuclear fuel company VIE issued $80 million of 5.28% Series L intermediate term secured notes due January 2029. The System Energy nuclear fuel company VIE expects to use the proceeds to purchase additional nuclear fuel.
As of December 31, 2025, Entergy Louisiana and System Energy each has obtained financing authorization from the FERC that extends through January 2027 for issuances by its nuclear fuel company VIEs. Entergy Arkansas has obtained financing authorization from the FERC that extends through February 2028 for issuances by its nuclear fuel company VIE.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.