Entergy Corporation (NYSE: ETR) prices $750M junior subordinated debentures
Rhea-AI Filing Summary
Entergy Corporation reported completing the sale of two series of junior subordinated debentures. On August 4, 2026, it entered into an underwriting agreement for $750,000,000 aggregate principal amount of Series 2026A Junior Subordinated Debentures due December 15, 2056 and $750,000,000 of Series 2026B Junior Subordinated Debentures due December 15, 2058. Each series pays interest at 6.500% per year from issuance, then resets during each Interest Reset Period to the Five-Year Treasury Rate plus 1.877% for Series 2026A (after December 15, 2036) and plus 2.030% for Series 2026B (after December 15, 2033), with a floor of 6.500%. The sale closed on August 7, 2026. The debentures were issued under Entergy’s May 1, 2024 subordinated indenture and an effective Registration Statement on Form S-3 (No. 333-289302).
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Filing Explained
The completed transaction is debt financing, not a disclosed common-stock issuance: Entergy issued junior-subordinated debentures requiring initial annual interest of 6.500% and principal repayment in 2056 and 2058, creating new company payment obligations without a stated ownership change for common holders.
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Series 2026A principal amount: $750,000,000
Series 2026B principal amount: $750,000,000
Initial interest rate: 6.500% per annum
+4 more
7 metrics
Series 2026A principal amount
$750,000,000
Aggregate principal amount of Series 2026A Junior Subordinated Debentures
Series 2026B principal amount
$750,000,000
Aggregate principal amount of Series 2026B Junior Subordinated Debentures
Initial interest rate
6.500% per annum
From issuance to prior reset date for both Series 2026A and Series 2026B debentures
Series 2026A reset spread
1.877%
Added to the Five-Year Treasury Rate during each Interest Reset Period after December 15, 2036
Series 2026B reset spread
2.030%
Added to the Five-Year Treasury Rate during each Interest Reset Period after December 15, 2033
Series 2026A maturity date
December 15, 2056
Stated maturity of Series 2026A Junior Subordinated Debentures
Series 2026B maturity date
December 15, 2058
Stated maturity of Series 2026B Junior Subordinated Debentures
Key Terms
Junior Subordinated Debentures, Interest Reset Period, Five-Year Treasury Rate, Officer’s Certificate, +1 more
5 terms
Junior Subordinated Debentures financial
"aggregate principal amount of the Company’s Junior Subordinated Debentures due December 15, 2056"
A junior subordinated debenture is a long-term loan a company issues to investors that sits low in the repayment order: holders get paid after most other creditors but usually before shareholders. Because it offers higher interest to compensate for greater risk, it can boost income for investors but also carries bigger chances of loss if the issuer faces financial trouble. Think of it as standing near the back of a line for repayment — you get a bigger reward but a smaller guarantee.
Interest Reset Period financial
"during each Interest Reset Period at an annual rate equal to the Five-Year Treasury Rate"
Five-Year Treasury Rate financial
"at an annual rate equal to the Five-Year Treasury Rate as of the most recent Reset Interest"
The five-year Treasury rate is the interest yield on U.S. government debt that matures in five years, effectively the price the government pays to borrow money for that period. Investors watch it because it acts like a benchmark or yardstick for borrowing costs, inflation expectations and economic outlook—affecting loan rates, bond prices and stock valuations much like a thermostat signals whether the economy is heating up or cooling down.
Officer’s Certificate regulatory
"the Company’s Officer’s Certificate dated as of August 4, 2026, establishing the terms"
Registration Statement on Form S-3 regulatory
"offered pursuant to the Company’s Registration Statement on Form S-3 (No. 333-289302)"
A registration statement on Form S‑3 is a short, standardized filing a qualified public company uses to register new securities with regulators so they can be sold to investors; think of it as a pre-approved, reusable permission slip that speeds up future offerings. It matters to investors because it lets the company raise money more quickly and cheaply — which can fund growth or pay debt — but may also lead to share dilution or change in ownership, so it affects value and liquidity.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What debt securities did Entergy (ETR) issue in August 2026?
Entergy issued two series of Junior Subordinated Debentures: $750,000,000 of Series 2026A due December 15, 2056 and $750,000,000 of Series 2026B due December 15, 2058. Both series were sold under an underwriting agreement dated August 4, 2026, with the sale closing August 7, 2026.
What is the interest rate on Entergy’s (ETR) Series 2026A Junior Subordinated Debentures?
The Series 2026A debentures pay 6.500% per year from issuance to before December 15, 2036. After that, during each Interest Reset Period, the rate equals the Five-Year Treasury Rate plus 1.877%, but it cannot reset below 6.500%.
How is interest determined on Entergy’s (ETR) Series 2026B Junior Subordinated Debentures?
Series 2026B also pays 6.500% per year from issuance to before December 15, 2033. Thereafter, each Interest Reset Period uses the Five-Year Treasury Rate plus 2.030%, with a minimum reset rate of 6.500%, matching the initial coupon floor.
When do Entergy’s (ETR) new junior subordinated debentures mature and when did the sale close?
The Series 2026A Junior Subordinated Debentures mature on December 15, 2056, and the Series 2026B debentures mature on December 15, 2058. The sale of both series closed on August 7, 2026 following the August 4, 2026 underwriting agreement.
Under what registration statement and indenture were Entergy’s (ETR) debentures issued?
The junior subordinated debentures were issued under Entergy’s subordinated debt indenture dated May 1, 2024. They were offered pursuant to an effective Registration Statement on Form S-3 (No. 333-289302), with specific terms set by Officer’s Certificates dated August 4, 2026.