Summary
Entergy Corporation (ETR) announced the successful closing of a substantial debt offering on August 7, 2026, raising a total of $1.5 billion through the issuance of Junior Subordinated Debentures. This offering comprises $750 million of Series 2026A Debentures due in 2056 and $750 million of Series 2026B Debentures due in 2058. These debentures are designed to strengthen the company's financial position and provide long-term capital. Investors should note the fixed-rate periods for each series, followed by reset periods tied to the Five-Year Treasury Rate, with floor rates ensuring a minimum coupon. The Series 2026A Debentures will bear interest at 6.500% until December 15, 2036, then float with a spread of 1.877% over the Five-Year Treasury Rate, subject to the 6.500% floor. The Series 2026B Debentures offer a similar structure, with a fixed rate of 6.500% until December 15, 2033, after which they will float with a spread of 2.030% over the Five-Year Treasury Rate, also subject to the 6.500% floor. This issuance was conducted under an effective Form S-3 registration statement.
Key Highlights
- 1Entergy Corporation closed an offering of $1.5 billion in Junior Subordinated Debentures on August 7, 2026.
- 2The offering consists of two tranches: $750 million Series 2026A Debentures due December 15, 2056, and $750 million Series 2026B Debentures due December 15, 2058.
- 3Series 2026A Debentures carry a fixed interest rate of 6.500% until December 15, 2036.
- 4Series 2026B Debentures carry a fixed interest rate of 6.500% until December 15, 2033.
- 5Post-fixed rate periods, both series will have floating interest rates tied to the Five-Year Treasury Rate plus a spread (1.877% for 2026A, 2.030% for 2026B), with a 6.500% floor.
- 6The debentures were issued under the company's Form S-3 registration statement, indicating a standard public offering process.
- 7This issuance is part of Entergy's strategy to manage its capital structure and secure long-term funding.