8-KFinancial EventsOther EventsExhibits & Filings

ENTERGY CORP /DE/ 8-K Report, Financial Obligation (Sep 19, 2008)

Filed September 19, 2008For Securities:ETR

Summary

This Form 8-K filing from Entergy Corporation (ETR) on September 19, 2008, primarily reports on the company's liquidity position and the preliminary financial impact of Hurricanes Gustav and Ike. As of September 15, 2008, Entergy had $3.198 billion in borrowings and $72 million in outstanding letters of credit against its $3.5 billion, 5-year bank credit facility, leaving $230 million in available capacity. This filing provides an update on the company's financial obligations and its ability to access funds during a period of significant operational challenges. The company also announced the preliminary effects of Hurricane Gustav and an initial assessment of Hurricane Ike on Entergy and its utility operating companies. While the full financial impact of these natural disasters is still being assessed, the information here is crucial for investors to understand the potential disruptions to operations and any associated costs or recovery efforts that may arise.

Key Highlights

  • 1Entergy Corporation had $3.198 billion in borrowings and $72 million in letters of credit outstanding under its $3.5 billion, 5-year bank credit facility as of September 15, 2008.
  • 2The available capacity under the credit facility was $230 million as of September 15, 2008.
  • 3The filing references prior reports (10-Q for June 30, 2007 and 2008) for more detailed information on the credit facility.
  • 4Entergy Corporation issued a press release on September 19, 2008, detailing the preliminary effects of Hurricane Gustav and an initial assessment of Hurricane Ike.
  • 5The press release, filed as Exhibit 99.1, provides information on the impact of these hurricanes on Entergy and its utility operating companies.
  • 6The report is an 8-K filing, indicating a significant event or change for the company.
  • 7The filing focuses on Item 2.03 (Direct Financial Obligation) and Item 8.01 (Other Events).

Frequently Asked Questions

As of September 15, 2008, Entergy Corporation had $3.198 billion borrowed and $72 million in outstanding letters of credit against its $3.5 billion credit facility, leaving $230 million in available capacity. This indicates a substantial portion of the credit line is utilized.

This 8-K filing serves two main purposes: to report on Entergy's direct financial obligations, specifically its credit facility usage, and to announce other events, namely the preliminary impact assessment of Hurricanes Gustav and Ike on the company and its subsidiaries.

The filing states that Entergy issued a press release on September 19, 2008, providing a preliminary effect on Entergy and its utility operating companies from Hurricane Gustav and an initial assessment of Hurricane Ike. Investors should refer to the press release (Exhibit 99.1) for the most current information on the hurricane impacts, although the full financial implications are likely still under assessment.

The filing indicates that more comprehensive details regarding Entergy's borrowing capacity, other facilities, and sources of liquidity as of August 31, 2008, can be found in Appendix B of the press release dated September 19, 2008 (Exhibit 99.1), and also refers to prior Form 10-Q filings for the quarters ended June 30, 2007, and June 30, 2008.