Entergy Mississippi, LLC filed SEC Form 8-K: Creation of a Direct Financial Obligation, Financial Statements and Exhibits
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Electric Utilities: Central
Public Utilities
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On April 14, 2022, Entergy Mississippi, LLC (the “Company”), as borrower, entered into the Credit Agreement (the “Credit Agreement”), with the Banks named therein, as Banks, and Citibank, N.A. (“Citibank”), as Administrative Agent. The Credit Agreement provides the Company with a $150 million unsecured revolving credit facility which may be increased to an amount not to exceed $175 million at the Company’s request. Borrowings under the facility mature and are payable on the termination date for the facility, July 14, 2024. The term of the Credit Agreement and the maturity date of borrowings thereunder may be extended for one year at the Company’s request and upon the satisfaction of certain conditions. As of April 14, 2022, there were no loans outstanding under the Credit Agreement.
The Credit Agreement contains certain customary covenants, including restrictions on the Company pledging its assets and restrictions on certain asset sales. It also contains a covenant that requires the Company to maintain a consolidated debt ratio of 65% or less of its total capitalization. Borrowings under the revolving credit facility bear interest at a variable interest rate reflecting either (A) a spread over term SOFR for either a 1 month period or a three month period or (B) Base Rate. Base Rate is equal to the greater of (i) Citibank’s base rate, (ii) the federal funds rate plus ½ of 1%, or (iii) SOFR for the interest period of 1 month plus 1.10%. The facility also provides for a commitment fee based on average daily unused amount of the commitments and the Company’s senior unsecured debt rating, which commitment fee is currently 0.125% of the undrawn commitment amount. The Company’s obligations under the Credit Agreement may be accelerated upon an event of default, which includes non-payment of principal or interest, breach of representation or warranty, breach of covenant, cross-default, bankruptcy, material judgments, ERISA events, a change of control occurs with respect to the Company and Entergy Corporation ceases to own, directly or indirectly, at least 80% of the Company’s common equity.
The foregoing description of the Credit Agreement does not purport to be complete and is qualified in its entirety be reference to the Credit Agreement filed as Exhibit 4.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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| 4.1 | |||||
| 104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Entergy Mississippi, LLC | |||||
| (Registrant) | |||||
Date: April 14, 2022 | |||||
| /s/ Steven C. McNeal | |||||
(Signature) Steven C. McNeal Vice President and Treasurer | |||||
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