8-KFinancial EventsOther Events

ENTERGY CORP /DE/ 8-K Report, Financial Obligation (Apr 12, 2007)

Filed April 12, 2007For Securities:ETR

Summary

Entergy Corporation (ETR) filed an 8-K on April 12, 2007, reporting two key events that occurred on April 11, 2007. Firstly, the company drew $380 million on its existing revolving credit facilities. A significant portion of this borrowing is earmarked for the near-term financing of the recently acquired Palisades nuclear plant. Secondly, Entergy's Non-Utility Nuclear business successfully completed the acquisition of the 798 MW Palisades nuclear energy plant from Consumers Energy Company for $380 million. This acquisition, first announced in July 2006, represents a material expansion of Entergy's nuclear generation assets and was funded, in part, by the recent credit facility draw. Investors should monitor the integration and operational performance of this new asset.

Key Highlights

  • 1Entergy Corporation drew $380 million on its revolving credit facilities on April 11, 2007.
  • 2The borrowing is intended to provide near-term financing for the Palisades nuclear plant acquisition.
  • 3Entergy's Non-Utility Nuclear business completed the acquisition of the Palisades nuclear plant on April 11, 2007.
  • 4The Palisades nuclear plant has a capacity of 798 MW.
  • 5The purchase price for the Palisades nuclear plant was $380 million.
  • 6As of April 11, 2007, the company had $1,026 million in available capacity under its 5-year credit facility and $580 million under its 3-year credit facility.

Frequently Asked Questions

The $380 million borrowed on April 11, 2007, under Entergy's revolving credit facilities was primarily to provide near-term financing for the acquisition of the Palisades nuclear plant.

The Palisades nuclear plant is a 798 MW nuclear energy facility located near South Haven, Michigan. Entergy's Non-Utility Nuclear business completed its acquisition of the plant on April 11, 2007, for $380 million.

As of April 11, 2007, Entergy had $1,026 million in available capacity under its $2,000 million 5-year credit facility and $580 million available under its $1,500 million 3-year credit facility, after accounting for outstanding borrowings and letters of credit.