Filed
pursuant to Rule 424(b)(2)
Registration
No. 333-132660
PROSPECTUS SUPPLEMENT
(To Prospectus dated July 26, 2006)
$300,000,000
Entergy Louisiana,
LLC
FIRST MORTGAGE BONDS,
6.50% SERIES DUE
SEPTEMBER 1, 2018
We are offering $300 million of our First Mortgage Bonds,
6.50% Series due September 1, 2018. We will pay interest on
the bonds on March 1 and September 1 of each year. The
first interest payment on the bonds will be made on
March 1, 2009. We may redeem the bonds, in whole or in
part, at any time prior to maturity, at the make-whole
redemption price described in this prospectus supplement.
As described in the accompanying prospectus, the bonds are a
series of first mortgage bonds issued under our mortgage and
deed of trust, which has the benefit of a first mortgage lien on
substantially all of our property.
Investing in the bonds involves risks. See Risk
Factors on
page S-1
of this prospectus supplement.
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or determined if this prospectus supplement or the
accompanying prospectus is truthful or complete. Any
representation to the contrary is a criminal offense.
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Underwriting
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Proceeds to
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Price to
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Discounts and
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Entergy Louisiana
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Public
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Commissions
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(before expenses)
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Per bond
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99.931
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%
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0.65
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%
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99.281
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%
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Total
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$
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299,793,000
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$
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1,950,000
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$
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297,843,000
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The price to public will also include any interest that has
accrued on the bonds since their issue date if delivered after
that date.
The underwriters expect to deliver the bonds to purchasers
through the book-entry facilities of The Depository
Trust Company in New York, New York on or about
August 18, 2008.
Joint Book-Running Managers
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KeyBanc
Capital Markets
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Lehman Brothers
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Wachovia Securities
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Co-Managers
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CALYON
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Citi
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Lazard Capital Markets
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August 11, 2008
You should rely only on the information contained or
incorporated by reference in this prospectus supplement and the
accompanying prospectus. We have not authorized anyone else to
provide you with different information. You should not assume
that the information contained in this prospectus supplement,
the accompanying prospectus or the documents incorporated by
reference is accurate as of any date other than as of the dates
of these documents or the dates these documents were filed with
the Securities and Exchange Commission (SEC). If the
information in this prospectus supplement is different from, or
inconsistent with, the information in the accompanying
prospectus, you should rely on the information contained in this
prospectus supplement. We are not making an offer of the bonds
in any state where the offer is not permitted.
TABLE OF
CONTENTS
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Page
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Prospectus Supplement
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S-1
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S-1
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S-2
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S-2
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S-3
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S-6
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S-7
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S-7
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Prospectus
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2
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2
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2
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3
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3
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4
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4
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9
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14
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16
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16
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17
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RISK
FACTORS
In considering whether to purchase the bonds, you should
carefully consider the information we have included or
incorporated by reference in this prospectus supplement and the
accompanying prospectus. In particular, you should carefully
consider the information under the heading Risk
Factors as well as the factors listed under the heading
Forward-Looking Information, in each case, contained
in our Annual Report on
Form 10-K
for the year ended December 31, 2007 (the 2007
Form 10-K),
and our Quarterly Report on
Form 10-Q
for the quarter ended June 30, 2008 (the Second
Quarter 2008
Form 10-Q),
each of which is incorporated by reference herein.
WHERE YOU
CAN FIND MORE INFORMATION
We are required to file annual, quarterly and current reports,
proxy statements and other information with the SEC. Our filings
are available to the public on the Internet at the SECs
website located at
http://www.sec.gov
.
You may read and copy any document at the SEC public reference
room located at:
100 F Street, N.E.
Room 1580
Washington, D.C.
20549-1004
Call the SEC at
1-800-732-0330
for more information about the public reference room and how to
request documents.
The SEC allows us to incorporate by reference the
information filed by us with the SEC, which means we can refer
you to important information without restating it in this
prospectus supplement. The information incorporated by reference
is an important part of this prospectus supplement, and
information that we file later will automatically update and
supersede this information. We incorporate by reference the
documents listed below along with any future filings that we
make with the SEC under Sections 13(a), 13(c), 14 or 15(d)
of the Securities Exchange Act of 1934, if the filings are made
prior to the time that all of the bonds are sold in this
offering:
1. the 2007
Form 10-K;
2. our Quarterly Report on
Form 10-Q
for the quarter ended March 31, 2008; and
3. the Second Quarter 2008
Form 10-Q.
You may access a copy of any or all of these filings, free of
charge, at our web site, which is located at
http://www.entergy.com
,
or by writing or telephoning us at the following address:
Ms. Dawn A. Abuso
Assistant Secretary
Entergy Louisiana, LLC
639 Loyola Avenue
New Orleans, Louisiana 70113
(504) 576-6755
You may also direct your requests via email to
dabuso@entergy.com
. We do not intend our Internet address
to be an active link or to otherwise incorporate the contents of
the website into this prospectus supplement or the accompanying
prospectus.
S-1
SELECTED
FINANCIAL INFORMATION
You should read our selected financial information set forth
below in conjunction with the financial statements and other
financial information contained in the documents incorporated by
reference. The selected financial information set forth below
has been derived from (1) our annual financial statements
for the three year period ended December 31, 2007, which
have been audited by Deloitte & Touche LLP, our
independent registered public accountants, and incorporated by
reference in this prospectus supplement from the 2007
Form 10-K,
and (2) our unaudited financial statements for the six
months ended June 30, 2008, incorporated by reference in
this prospectus supplement from the Second Quarter 2008
Form 10-Q.
The following material, which is presented in this prospectus
supplement solely to furnish summary information, is qualified
by, and should be considered in conjunction with, the more
detailed information appearing in the documents incorporated by
reference herein.
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For the Twelve Months Ended
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June 30,
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December 31,
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2008
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2007
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2006
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2005
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(Dollars in thousands)
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Income Statement Data:
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Operating Revenues
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$
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2,782,296
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$
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2,737,552
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$
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2,451,258
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$
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2,650,181
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Operating Income
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288,854
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288,506
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267,963
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281,134
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Interest and Other Charges
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74,410
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78,198
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81,958
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78,827
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Net Income
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144,910
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143,337
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137,618
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128,082
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Ratio of Earnings to Fixed Charges(1)
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3.68
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3.44
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3.23
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3.50
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As of June 30, 2008
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Actual
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As Adjusted(2)
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Amount
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Percent
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Amount
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Percent
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(Dollars in thousands)
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Balance Sheet Data:
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Members Equity
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Preferred Membership Interests (without sinking fund)
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$
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100,000
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3
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%
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$
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100,000
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3
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%
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Members Equity
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1,534,173
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53
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1,534,173
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48
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Accumulated other comprehensive loss
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(27,004
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(1
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(27,004
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(1
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Total Members Equity
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1,607,169
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55
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1,607,169
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50
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First Mortgage Bonds
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840,000
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29
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1,140,000
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36
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Other Long-Term Debt(3)
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447,666
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16
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447,666
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14
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Total Capitalization
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$
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2,894,835
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100.0
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%
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$
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3,194,835
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100.0
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%
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(1)
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As defined by Item 503(d) of
Regulation S-K
of the SEC, Earnings represents the aggregate of
(a) income before the cumulative effect of a change in
accounting, (b) taxes based on income, (c) investment
tax credit adjustment net and (d) fixed
charges. Fixed Charges as defined by
Item 503(d) of
Regulation S-K
of the SEC, include interest (whether expensed or capitalized),
related amortization and estimated interest applicable to
rentals charged to operating expenses.
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(2)
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Adjusted to reflect the issuance and sale of the bonds. See
Use of Proceeds.
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(3)
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In addition, as of June 30, 2008 we had approximately
$98.5 million of obligations under capital leases
(approximately $42.7 million of which are current
liabilities).
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USE OF
PROCEEDS
We anticipate our net proceeds from the sale of the bonds will
be approximately $297.2 million after deducting
underwriting discounts and commissions and estimated offering
expenses. We will use the net proceeds we receive from the
issuance and sale of the bonds for capital expenditures, working
capital needs and general corporate purposes. Pending the
application of the net proceeds, we will invest them in
short-term, highly liquid, high-rated money market instruments
and/or
the
Entergy System money pool.
S-2
DESCRIPTION
OF THE BONDS
Interest,
Maturity and Payment
We are offering $300 million of our First Mortgage Bonds,
6.50% Series due September 1, 2018. We will pay interest on
the bonds on March 1 and September 1 of each year,
beginning on March 1, 2009. Interest will accrue at the
rate of 6.50% per year and starts to accrue from the date that
the bonds are issued. As long as the bonds are registered in the
name of The Depository Trust Company (DTC) or
its nominee, the record date for interest payable on any
interest payment date shall be the close of business on the
Business Day immediately preceding such interest payment date.
We have agreed to pay interest on any overdue principal and, if
such payment is enforceable under applicable law, on any overdue
installment of interest on the bonds at a rate of 6% per annum
to holders of record at the close of business on the Business
Day immediately preceding our payment of such interest.
Interest on the bonds will be computed on the basis of a
360-day
year
of twelve
30-day
months. If any interest payment date or the maturity date falls
on a day that is not a Business Day, the payment due on that
interest payment date or the maturity date will be made on the
next Business Day, and without any interest or other payment in
respect of such delay.
Form and
Denomination
The bonds will be issued in denominations of $1,000 and integral
multiples thereof. The bonds will be represented by a global
certificate without coupons registered in the name of a nominee
of DTC. As long as the bonds are registered in the name of DTC
or its nominee, we will pay principal, any premium and interest
due on the bonds to DTC. DTC will then make payment to its
participants for disbursement to the beneficial owners of the
bonds as described in the accompanying prospectus under the
heading Book-Entry Only Securities.
Optional
Redemption
We may redeem the bonds, in whole or in part, at our option, on
not less than 30 days nor more than
60 days notice, at any time prior to maturity, at a
redemption price equal to the greater of (a) 100% of the
principal amount of the bonds being redeemed and (b) as
determined by the Independent Investment Banker, the sum of the
present values of the remaining scheduled payments of principal
of and interest on the bonds being redeemed (excluding the
portion of any such interest accrued to the redemption date),
discounted (for purposes of determining such present values) to
the redemption date on a semi-annual basis (assuming a
360-day
year
consisting of twelve
30-day
months) at the Adjusted Treasury Rate plus 0.40% plus accrued
interest thereon to the redemption date.
If, at the time notice of redemption is given, the redemption
monies are not held by the corporate trustee (as defined in the
accompanying prospectus), the redemption may be made subject to
receipt of such monies before the date fixed for redemption, and
such notice shall be of no effect unless such monies are so
received.
We may apply cash we deposit under any provision of the
mortgage, with certain exceptions, to the redemption or
purchase, including the purchase from us, of first mortgage
bonds of any series under our mortgage including the bonds.
Certain
Definitions
Adjusted Treasury Rate
means, with respect to
any redemption date:
(1) the yield, under the heading which represents the
average for the immediately preceding week, appearing in the
most recently published statistical release designated
H.15(519) or any successor publication which is
published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded
United States Treasury securities adjusted to constant maturity
under the caption Treasury Constant Maturities, for
the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the remaining
term of the bonds, yields for the two published maturities most
closely corresponding to the Comparable Treasury Issue shall be
determined and the Adjusted Treasury Rate shall be interpolated
or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or
(2) if such release (or any successor release) is not
published during the week preceding the calculation date for the
Adjusted Treasury Rate or does not contain such yields, the rate
per annum equal to the semi-annual equivalent yield to maturity
of the Comparable Treasury Issue, calculated using a price for
the
S-3
Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for
such redemption date.
The Adjusted Treasury Rate shall be calculated on the third
Business Day preceding the redemption date.
Business Day
means any day other than a
Saturday or a Sunday or a day on which banking institutions in
The City of New York are authorized or required by law or
executive order to remain closed or a day on which the corporate
trust office of the corporate trustee is closed for business.
Comparable Treasury Issue
means the United
States Treasury security selected by the Independent Investment
Banker as having a maturity comparable to the remaining term of
the bonds that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to
the remaining term of the bonds.
Comparable Treasury Price
means, with respect
to any redemption date, (1) the average of five Reference
Treasury Dealer Quotations for such redemption date after
excluding the highest and lowest such Reference Treasury Dealer
Quotations or (2) if the Independent Investment Banker
obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer
Quotations.
Independent Investment Banker
means one of
the Reference Treasury Dealers that we appoint to act as the
Independent Investment Banker from time to time or, if any of
such firms is unwilling or unable to select the Comparable
Treasury Issue, an independent investment banking institution of
national standing appointed by us.
Reference Treasury Dealer
means
(1) Lehman Brothers Inc., a primary U.S. Government
securities dealer in New York City (Primary Treasury
Dealer) selected by KeyBanc Capital Markets Inc., and a
Primary Treasury Dealer selected by Wachovia Capital Markets,
LLC, and their respective successors; provided, however, that if
any of the foregoing shall cease to be a Primary Treasury
Dealer, we will substitute therefor another Primary Treasury
Dealer, and (2) any other Primary Treasury Dealer selected
by the Independent Investment Banker after consultation with us.
Reference Treasury Dealer Quotations
means,
with respect to each Reference Treasury Dealer and any
redemption date, the average, as determined by the Independent
Investment Banker, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a
percentage of its principal amount) quoted in writing to the
Independent Investment Banker at 5:00 p.m. on the third
Business Day preceding such redemption date.
Security
The following subsection replaces in its entirety the section
entitled Description of the First Mortgage
Bonds Security in the accompanying
prospectus.
The bonds, together with all other first mortgage bonds
outstanding now or in the future under the mortgage, will be
secured by the mortgage. In the opinion of our counsel, the
mortgage constitutes a first mortgage lien on substantially all
of our property subject to:
1. leases of minor portions of our property to others for
uses which, in the opinion of our counsel, do not interfere with
our business;
2. leases of certain of our property that we do not use in
our business; and
3. excepted encumbrances.
The mortgage does not create a lien on the following
excepted property:
1. cash and securities;
2. certain equipment, materials and supplies;
3. automobiles and other vehicles and aircraft, timber,
minerals, mineral rights and royalties; and
4. receivables, contracts, leases and operating agreements.
The mortgage contains provisions that impose the lien of the
mortgage on the following after-acquired property:
1. improvements, extensions and additions to and renewals
and replacements on mortgaged property owned by us on
January 1, 2006, and
S-4
2. franchises, repairs and additional property that may be
acquired, made or constructed by us (a) to maintain, renew
and preserve the franchises covered by the mortgage, or
(b) to maintain the mortgaged property as an operating
system or systems in good repair, working order and condition,
or (c) in rebuilding or renewal of mortgaged property that
is damaged or destroyed, or (d) in replacement of or
substitution for mortgaged equipment, which shall have become
old, inadequate, obsolete, worn out, unfit, unadapted,
unserviceable, undesirable or unnecessary for use in the
operation of the mortgaged property,
in each case, subject to pre-existing liens.
To the extent after-acquired property does not constitute such
improvements, extensions, additions, renewals, replacements,
franchises, repairs or additional property, we may elect (but
are not required) to subject such after-acquired property to the
lien of the mortgage.
If we consolidate or merge with, or sell substantially all of
our assets to, another corporation (as defined in the mortgage),
the lien created by the mortgage will generally not cover the
property of the successor company, other than the property it
acquires from us and improvements, replacements and additions to
that property.
The mortgage also provides that the trustees have a lien on the
mortgaged property to ensure the payment of their reasonable
compensation, expenses and disbursements and for indemnity
against certain liabilities. This lien takes priority over the
lien securing the first mortgage bonds.
The mortgage also contains restrictions on the issuance of bonds
under prior lien mortgages.
Amendments
to Mortgage
Before the issuance of the bonds, we will effect the amendments
to the mortgage described in the accompanying prospectus under
Description of the First Mortgage Bonds
Replacement Fund (described in the third paragraph of such
section), Issuance of Additional First
Mortgage Bonds (described in the fifth paragraph of such
section), Release and Substitution of
Property (described in the third paragraph of such
section) and Modification (described in
the second paragraph of such section). These amendments will be
effective before the original issuance of the bonds.
Covenant
as to Distributions
We will not enter into a distribution covenant with respect to
the bonds; however, so long as the first mortgage bonds we have
issued prior to the date hereof remain outstanding, holders of
the bonds offered herein will indirectly benefit from our
covenant relating to those outstanding first mortgage bonds to
restrict our payment of cash distributions on our common
membership interests in certain circumstances.
Issuance
of First Mortgage Bonds
The bonds will be issued on the basis of property additions. As
of June 30, 2008, after giving effect to the amendments
described above under - Amendments to Mortgage,
approximately $472 million of first mortgage bonds could
have been issued under our mortgage on the basis of net property
additions, and approximately $102 million of first mortgage
bonds could have been issued under our mortgage on the basis of
retired bond credits.
Corporate
Trustee
The Bank of New York Mellon is the corporate trustee under our
mortgage.
Additional
Information
For additional information about the bonds, see
Description of the First Mortgage Bonds in the
accompanying prospectus, including:
1. additional information about the terms of the bonds,
2. general information about our mortgage and the trustees,
3. a description of certain restrictions contained in our
mortgage,
4. a description of events of default under our
mortgage, and
5. a description of reservations of rights to amend certain
provisions of our mortgage without your consent.
S-5
UNDERWRITING
Under the terms and conditions set forth in the underwriting
agreement, dated the date of this prospectus supplement, we have
agreed to sell each of the underwriters named below, and each of
the underwriters has severally agreed to purchase, the principal
amounts of bonds set forth opposite its name below:
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Principal
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Amount of
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Name
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Bonds
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KeyBanc Capital Markets Inc.
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$
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84,000,000
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Lehman Brothers Inc.
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84,000,000
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Wachovia Capital Markets, LLC
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84,000,000
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Calyon Securities (USA) Inc.
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16,000,000
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Citigroup Global Markets Inc.
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16,000,000
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Lazard Capital Markets LLC
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16,000,000
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Total
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$
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300,000,000
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Under the terms and conditions of the underwriting agreement,
the underwriters have committed, subject to the terms and
conditions set forth therein, to take and pay for all of the
bonds if any are taken, provided, that under certain
circumstances involving a default of an underwriter, less than
all of the bonds may be purchased.
The underwriters initially propose to offer all or part of the
bonds directly to the public at the price to public set forth on
the cover page hereof and to certain securities dealers at such
price less a concession not in excess of 0.40% of the principal
amount of the bonds. The underwriters may allow, and such
dealers may reallow certain brokers and dealers, a concession
not in excess of 0.20% of the principal amount of the bonds.
After the initial offering of the bonds, the offering price and
other selling terms may from time to time be varied by the
underwriters.
We have agreed to indemnify the underwriters against certain
liabilities, including liabilities under the Securities Act of
1933.
We estimate that our total expenses for this offering will be
$650,000, excluding underwriting discounts and commissions.
The bonds will constitute a new class of securities with no
established trading market. We cannot assure you as to
(1) the liquidity of any such market that may develop,
(2) the ability of holders of bonds to sell their bonds or
(3) the price at which the holders of bonds would be able
to sell their bonds. If such a market develops, the bonds could
trade at prices that may be higher or lower than their principal
amount or purchase price, depending on many factors, including
prevailing interest rates, the market for similar debt
securities and our business, results of operations, financial
condition or prospects. We do not intend to apply for listing of
the bonds on any securities exchange or for inclusion of the
bonds in any automated quotation system.
In order to facilitate the offering of the bonds, the
underwriters may engage in transactions that stabilize, maintain
or otherwise affect the price of the bonds. Specifically, they
may over-allot in connection with the offering, creating a short
position in the bonds for their own accounts. In addition, to
cover over-allotments or to stabilize the price of the bonds,
the underwriters may bid for, and purchase, the bonds in the
open market. Finally, the underwriters may reclaim selling
concessions allowed to dealers for distributing the bonds in the
offering, if they repurchase previously distributed bonds in
transactions to cover short positions established by them, in
stabilization transactions or otherwise. Any of these activities
may stabilize or maintain the market price of the bonds above
independent market levels. The underwriters are not required to
engage in these activities and may end any of these activities
at any time.
We expect to deliver the bonds against payment therefor on or
about the date specified in the last paragraph of the cover page
of this prospectus supplement, which will be the fifth business
day following the date of the pricing of the bonds. Under
Rule 15c6-1
of the Exchange Act, trades in the secondary market generally
are required to settle in three business days, unless the
parties to a trade expressly agree otherwise. Accordingly,
purchasers who wish to trade the bonds on the date of pricing or
the next succeeding business day will be required, by virtue of
the fact that the bonds initially will settle in T+5, to specify
alternative settlement arrangements to prevent a failed
settlement.
S-6
In the ordinary course of their respective businesses, the
underwriters and certain of their affiliates have in the past
and may in the future engage in investment banking or other
transactions of a financial nature with us and our affiliates,
for which they have received customary compensation. Certain of
the underwriters, either directly or through affiliates, are
lenders under certain Entergy System credit facilities.
Lazard Capital Markets LLC (Lazard Capital Markets)
has entered into an agreement with Mitsubishi UFJ Securities
(USA) Inc. (MUS(USA)) pursuant to which MUS(USA)
provides certain advisory
and/or
other
services to Lazard Capital Markets, including in respect of this
offering. In return for the provision of such services by
MUS(USA) to Lazard Capital Markets, Lazard Capital Markets will
pay MUS(USA) a mutually agreed upon fee.
EXPERTS
The financial statements and related financial statement
schedule as of December 31, 2007 and 2006, and for each of
the three years in the period ended December 31, 2007,
incorporated by reference in this prospectus supplement and the
accompanying prospectus, and the effectiveness of Entergy
Louisiana, LLCs internal control over financial reporting
as of December 31, 2007, have been audited by
Deloitte & Touche LLP, an independent registered
public accounting firm, as stated in their reports, which are
incorporated by reference herein. Such financial statements and
financial statement schedule have been so incorporated in
reliance upon the reports of such firm given upon their
authority as experts in accounting and auditing.
LEGALITY
The legality of the bonds will be passed upon for us by Mark G.
Otts, Senior Counsel Corporate and Securities, of
Entergy Services, Inc., New Orleans, Louisiana, Clark,
Thomas & Winters, A Professional Corporation, Austin,
Texas, and Thelen Reid Brown Raysman & Steiner LLP,
New York, New York. Certain matters with respect to the offering
of the bonds will be passed upon for the underwriters by
Pillsbury Winthrop Shaw Pittman LLP, New York,
New York. Pillsbury Winthrop Shaw Pittman LLP regularly
represents us and our affiliates in connection with various
matters. Thelen Reid Brown Raysman & Steiner LLP and
Pillsbury Winthrop Shaw Pittman LLP may rely on the opinion of
Mark G. Otts, Esq., as to matters of Louisiana law relevant
to their opinions, and on the opinion of Clark,
Thomas & Winters, A Professional Corporation, as to
matters of Texas law relevant to their opinions. Matters
pertaining to New York law will be passed upon by Thelen Reid
Brown Raysman & Steiner LLP, our New York counsel. All
legal matters pertaining to our organization and certain matters
with respect to the lien of the mortgage under Texas law will be
passed upon only by Clark, Thomas & Winters, A
Professional Corporation. All legal matters pertaining to our
titles to property, franchises and the lien of the mortgage and
all other matters pertaining to Louisiana law will be passed
upon only by Mark G. Otts, Esq.
The statements in this prospectus supplement as to matters of
law and legal conclusions made under Description of the
Bonds Security, have been reviewed by Mark G.
Otts, Esq. and Clark, Thomas & Winters, a
Professional Corporation, and are set forth herein in reliance
upon the opinions of said counsel, and upon their authority as
experts.
S-7
PROSPECTUS
$400,000,000
First Mortgage Bonds
and
Debt Securities
ENTERGY
LOUISIANA, LLC
446 North Boulevard
Baton Rouge, Louisiana 70802
(225) 381-5868
We -
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may periodically offer our first mortgage bonds
and/or
our
debt securities in one or more series; and
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will determine the price and other terms of each series of
securities when sold, including whether any series will be
subject to redemption prior to maturity.
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The First Mortgage Bonds -
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will be secured by a mortgage that constitutes a first mortgage
lien on substantially all of our property; and
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will not be listed on a national securities exchange or the
Nasdaq Stock Market unless otherwise indicated in the
accompanying prospectus supplement.
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The Debt Securities -
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will be unsecured and will rank equally with all of our other
unsecured and unsubordinated debt;
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will be effectively subordinated to all of our secured debt,
including our first mortgage bonds, as to the collateral pledged
to support our secured debt; and
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will not be listed on a national securities exchange or the
Nasdaq Stock Market unless otherwise indicated in the
accompanying prospectus supplement.
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You -
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will receive interest payments in the amounts and on the dates
specified in an accompanying prospectus supplement.
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This prospectus may be used to offer and sell series of
securities only if accompanied by the prospectus supplement for
that series. We will provide the specific terms of these
securities, including their offering prices, interest rates and
maturities, in supplements to this prospectus. The supplements
may also add, update or change information in this prospectus.
You should read this prospectus and any supplements carefully
before you invest.
Investing in the securities offered by this prospectus
involves risks. See Risk Factors on page 2.
Neither the Securities and Exchange Commission nor any
state securities commission has approved or disapproved of these
securities or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal
offense.
We may offer these securities directly or through
underwriters, agents or dealers. Each prospectus supplement will
provide the terms of the plan of distribution for the related
series of securities.
July 26,
2006
RISK
FACTORS
In considering whether to purchase the securities being offered,
you should carefully consider the information we have included
or incorporated by reference in this prospectus. In particular,
you should carefully consider the information under the heading
Risk Factors as well as the factors listed under the
heading Forward-Looking Information, in each case,
contained in our Annual Report on
Form 10-K
for the year ended December 31, 2005 and our Quarterly
Report on
Form 10-Q
for the quarter ended March 31, 2006, each of which is
incorporated by reference herein.
ABOUT
THIS PROSPECTUS
This prospectus is part of a registration statement that we
filed with the SEC, utilizing a shelf registration
process. Under this shelf process, we may sell the securities
described in this prospectus in one or more offerings up to a
total dollar amount of $400,000,000. This prospectus provides a
general description of the securities being offered. Each time
we sell a series of securities we will provide a prospectus
supplement containing specific information about the terms of
that series of securities and the related offering. It is
important for you to consider the information contained in this
prospectus and the accompanying prospectus supplement together
with additional information described under the heading
Where You Can Find More Information in making your
investment decision.
ENTERGY
LOUISIANA, LLC
We are a limited liability company organized under the laws of
the State of Texas. As part of a restructuring involving a Texas
statutory
merger-by-division
effective December 31, 2005, we succeeded to all of the
regulated utility operations of the Louisiana corporation,
Entergy Louisiana, Inc. (ELI), an electric public
utility company providing service to customers in the State of
Louisiana since 1927. We were allocated substantially all of the
property and other assets of ELI, including all assets used to
provide retail and wholesale electric service to ELIs
customers, and assumed substantially all of the liabilities of
ELI, including all of its debt securities and leases but
excluding the outstanding preferred stock of ELI.
On December 31, 2005, and immediately prior to the
formation of Entergy Louisiana, LLC, ELI changed its state of
incorporation from Louisiana to Texas and its name to Entergy
Louisiana Holdings, Inc. Upon the effectiveness of the statutory
merger-by-division
on December 31, 2005, Entergy Louisiana, LLC was organized,
and Entergy Louisiana Holdings, Inc. held all of Entergy
Louisiana, LLCs common membership interests. All of the
common membership interests of Entergy Louisiana, LLC continue
to be held by Entergy Louisiana Holdings, Inc., and all of the
common stock of Entergy Louisiana Holdings, Inc. continues to be
held by Entergy Corporation.
We are therefore indirectly owned by Entergy Corporation. The
other major public utilities owned by Entergy Corporation are
Entergy Arkansas, Inc., Entergy Gulf States, Inc., Entergy
Mississippi, Inc. and Entergy New Orleans, Inc.
Entergy Corporation also owns all of the common stock of System
Energy Resources, Inc., the principal asset of which is its
interest in the Grand Gulf Electric Generating Station
(Grand Gulf).
Capacity and energy from Grand Gulf are allocated among Entergy
Arkansas, Inc., Entergy Mississippi, Inc., Entergy New Orleans,
Inc. and us under a unit power sales agreement. Our allocated
share of Grand Gulfs capacity and energy, together with
related costs, is 14%. Payments we make under the unit power
sales agreement are generally recovered through rates set by the
Louisiana Public Service Commission, which regulates our
electric service, rates and charges.
The information above is only a summary and is not complete. You
should read the incorporated documents listed under the heading
Where You Can Find More Information for more
specific information concerning our business and affairs,
including significant contingencies, significant factors and
known trends, our general capital requirements, our financing
plans and capabilities, and pending legal and regulatory
proceedings, including the status of industry restructuring in
our service areas.
2
RATIOS OF
EARNINGS TO FIXED CHARGES
We have calculated ratios of earnings to fixed charges pursuant
to Item 503 of SEC
Regulation S-K
as follows:
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Twelve Months Ended
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December 31,
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March 31, 2006
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2005
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2004
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2003
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3.75
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3.50
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3.60
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3.93
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3.14
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2.76
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Earnings,
as defined by
Regulation S-K,
represent the aggregate of (1) income before the cumulative
effect of an accounting change, (2) taxes based on income,
(3) investment tax credit
adjustments-net
and (4) fixed charges.
Fixed Charges
include interest (whether
expensed or capitalized), related amortization and interest
applicable to rentals charged to operating expenses.
WHERE YOU
CAN FIND MORE INFORMATION
We have filed a registration statement on
Form S-3
with the Securities and Exchange Commission, or SEC, under the
Securities Act of 1933. This prospectus is part of the
registration statement, but the registration statement also
contains or incorporates by reference additional information and
exhibits. We are subject to the informational requirements of
the Securities Exchange Act of 1934, and therefore we are
required to file annual, quarterly and current reports, proxy
statements and other information with the SEC. Our filings are
available to the public on the Internet at the SECs
website located at
(
http://www.sec.gov
).
You may read and copy any document at the SEC Public Reference
Room located at:
100 F Street, N.E.
Room 1580
Washington, D.C.
20549-1004.
Call the SEC at
1-800-732-0330
for more information about the public reference room and how to
request documents.
The SEC allows us to incorporate by reference the
information we file with the SEC, which means we can refer you
to important information without restating it in this
prospectus. The information incorporated by reference is an
important part of this prospectus, and information that we file
later with the SEC will automatically update and supersede this
information. We incorporate by reference the documents listed
below and all documents that we file with the SEC under
Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934, along with any future filings that we make
with the SEC under Sections 13(a), 13(c), 14 or 15(d) of
the Securities Exchange Act of 1934 until we have sold all of
the securities described in this prospectus:
1. our Annual Report on
Form 10-K
for the year ended December 31, 2005;
2. our Quarterly Report on
Form 10-Q
for the quarter ended March 31, 2006; and
3. our Current Report on
Form 8-K
dated June 7, 2006 (filed June 9, 2006).
You may access a copy of any or all of these filings, free of
charge, at our web site
(
http://www.entergy.com
)
or by writing or calling us at the following address:
Ms. Dawn A. Abuso
Assistant Secretary
Entergy Louisiana, LLC
639 Loyola Avenue
New Orleans, Louisiana 70113
(504) 576-6755
You may also direct your requests via
e-mail
to
dabuso@entergy.com
.
You should rely only on the information incorporated by
reference or provided in this prospectus or any accompanying
prospectus supplement. We have not, nor have any underwriters,
dealers or agents, authorized anyone else to provide you with
different information about us or the securities. We are not,
nor are any underwriters, dealers or agents, making an offer of
the securities in any state where the offer is not permitted.
You should not assume that the information in this prospectus or
any accompanying prospectus supplement is
3
accurate as of any other date than the date on the front of
those documents or that the documents incorporated by reference
in this prospectus are accurate as of any date other than the
date those documents were filed with the SEC. Our business,
financial condition, results of operations and prospects may
have changed since these dates.
USE OF
PROCEEDS
The net proceeds from the offering of the securities will be
used either (a) to acquire or redeem one or more series of
our outstanding securities on their stated due dates or in some
cases prior to their stated due dates or (b) for other
general corporate purposes. The specific purposes for the
proceeds of a particular series of securities or the specific
securities, if any, to be acquired or redeemed with the proceeds
of a particular series of securities will be described in the
prospectus supplement relating to that series.
DESCRIPTION
OF THE FIRST MORTGAGE BONDS
General
We will issue the first mortgage bonds offered by this
prospectus from time to time in one or more series under one or
more separate supplemental indentures to the Mortgage and Deed
of Trust dated as of April 1, 1944 with The Bank of New
York (successor to Harris Trust Company of New York, as
corporate trustee (the corporate trustee)), and
Stephen J. Giurlando (successor to Mark F. McLaughlin, as
co-trustee), and together referred to in this prospectus as
trustees. This Mortgage and Deed of Trust, as amended and
supplemented, is referred to in this prospectus as the
mortgage. All first mortgage bonds issued or to be
issued under the mortgage, including the first mortgage bonds
offered by this prospectus, are referred to herein as
first mortgage bonds.
The statements in this prospectus and any accompanying
prospectus supplement concerning the first mortgage bonds and
the mortgage are not comprehensive and are subject to the
detailed provisions of the mortgage. The mortgage and a form of
supplemental indenture are filed as exhibits to the registration
statement of which this prospectus forms a part. You should read
these documents for provisions that may be important to you. The
mortgage has been qualified under the Trust Indenture Act
of 1939. You should refer to the Trust Indenture Act of
1939 for provisions that apply to the first mortgage bonds.
Wherever particular provisions or defined terms in the mortgage
are referred to under this heading Description of the
First Mortgage Bonds, those provisions or defined terms
are incorporated by reference in this prospectus.
Terms of
Specific Series of the First Mortgage Bonds
A prospectus supplement relating to each series of first
mortgage bonds offered by this prospectus will include a
description of the specific terms relating to the offering of
that series. These terms will include any of the following terms
that apply to that series:
1. the designation, or name, of the series of first
mortgage bonds;
2. the aggregate principal amount of the series;
3. the offering price of the series;
4. the date on which the series will mature;
5. the rate or method for determining the rate at which the
series will bear interest;
6. the date from which interest on the series accrues;
7. the dates on which interest on the series will be
payable;
8. the prices and other terms and conditions, if any, upon
which we may redeem the series prior to maturity;
9. the applicability of a distribution covenant, if any, to
the series;
10. the terms of an insurance policy, if any, that will be
provided for the payment of principal of
and/or
interest on the series; and
11. any other terms or provisions relating to that series
that are not inconsistent with the mortgage.
4
As of June 30, 2006, we had approximately
$1,008 million principal amount of first mortgage bonds
outstanding.
Replacement
Fund
In addition to actual expenditures for maintenance and repairs,
the mortgage requires us to expend or deposit each year an
amount equal to $800,000 plus
2
1
/
4
%
of net additions to the mortgaged electric, gas, steam
and/or
hot
water utility property made after December 31, 1943 and
prior to the beginning of that year. These funds are for
replacements and improvements on electric, gas, steam
and/or
hot
water utility property and certain automotive equipment subject
to the lien of the mortgage. We can meet this requirement by:
1. depositing cash;
2. certifying gross property additions;
3. certifying net cash expenditures for certain automotive
equipment; or
4. taking credit for first mortgage bonds and qualified
lien bonds that we have retired.
We may withdraw the cash against gross property additions or by
waiver of our right to issue first mortgage bonds on the basis
of retired bond credits.
We have reserved the right to amend the mortgage without any
consent or other action of the holders of any series of first
mortgage bonds created after February 29, 1996 to eliminate
the requirements of the replacement fund under the mortgage.
Sinking
or Improvement Fund
The mortgage also requires us to make annual sinking or
improvement fund payments for certain outstanding series of
first mortgage bonds. This amount is stated as 1% per year of
the greatest amount for each of these series outstanding prior
to the beginning of the year, less certain retired first
mortgage bonds. Any series of first mortgage bonds that we issue
under this prospectus will not be entitled to these sinking or
improvement fund requirements.
Redemption
and Retirement
General
The prospectus supplement for a particular series of first
mortgage bonds offered by this prospectus will contain the
prices and other terms and conditions, if any, for redemption of
that series prior to maturity.
Special
Retirement Provisions
If, during any
12-month
period, we dispose of mortgaged property by order of or to any
governmental authority, resulting in the receipt of $5,000,000
or more as proceeds, we, subject to certain conditions, must
apply such proceeds, less certain deductions, to the retirement
of outstanding first mortgage bonds. If this occurs, we may
redeem the outstanding first mortgage bonds of any series that
are redeemable before maturity by the application of cash
deposited for this purpose at the redemption prices applicable
to those first mortgage bonds. If any series of first mortgage
bonds offered by this prospectus are redeemable for this
purpose, the special redemption prices applicable to that series
will be set forth in the prospectus supplement related to that
series.
Security
The first mortgage bonds offered by this prospectus, together
with all other first mortgage bonds outstanding now or in the
future under the mortgage, will be secured by the mortgage. In
the opinion of our counsel, the mortgage constitutes a first
mortgage lien on substantially all of our property subject to:
1. leases of minor portions of our property to others for
uses which, in the opinion of our counsel, do not interfere with
our business;
2. leases of certain of our property that we do not use in
our business; and
3. excepted encumbrances.
The mortgage does not create a lien on the following
excepted property:
1. cash and securities;
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2. certain equipment, materials and supplies;
3. automobiles and other vehicles and aircraft, timber,
minerals, mineral rights and royalties; and
4. receivables, contracts, leases and operating agreements.
The mortgage contains provisions that impose the lien of the
mortgage on property that we acquired after the date of the
mortgage, other than the excepted property, subject to
pre-existing liens. However, if we consolidate or merge with, or
sell substantially all of our assets to, another corporation (as
defined in the mortgage), the lien created by the mortgage will
generally not cover the property of the successor company, other
than the property it acquires from us and improvements,
replacements and additions to that property.
The mortgage also provides that the trustees have a lien on the
mortgaged property to ensure the payment of their reasonable
compensation, expenses and disbursements and for indemnity
against certain liabilities. This lien takes priority over the
lien securing the first mortgage bonds.
The mortgage also contains restrictions on the issuance of bonds
under prior lien mortgages.
Issuance
of Additional First Mortgage Bonds
The maximum principal amount of first mortgage bonds that may be
issued under the mortgage is limited to $100 billion at any
time outstanding under the mortgage, subject to property
additions, earnings and other limitations of the mortgage. First
mortgage bonds of any series may be issued from time to time on
the following bases:
1. 60% of the cost or fair value, whichever is less, of
unfunded property additions after adjustments to offset
retirements;
2. retirements of first mortgage bonds or qualified lien
bonds; or
3. deposit of cash with the trustees.
Property additions generally include, among other things,
electric, gas, steam or hot water property acquired after
December 31, 1943. Securities, automobiles or other
vehicles or aircraft, or property used principally for the
production or gathering of natural gas may not be included as
property additions.
As of June 30, 2006, we could have issued approximately
$195.9 million principal amount of additional first
mortgage bonds on the basis of property additions and
approximately $102 million principal amount of first
mortgage bonds on the basis of retired first mortgage bonds. We
expect to issue the first mortgage bonds offered by this
prospectus on the basis of property additions
and/or
on
the basis of retired first mortgage bonds.
With certain exceptions in the case of clause (2) above,
the issuance of additional first mortgage bonds must meet an
earnings test. The adjusted net earnings, before
interest and income taxes, for 12 consecutive months of the
preceding 15 months must be at least twice the annual
interest requirements on all first mortgage bonds outstanding at
the time, plus the first mortgage bonds to be issued, plus all
indebtedness, if any, of prior rank. The adjusted net earnings
are calculated after provisions are made for retirement and
depreciation of property at least equal to the replacement fund
requirements for that period.
We have reserved the right to amend the mortgage without any
consent or other action of the holders of any series of first
mortgage bonds created after February 29, 1996, and the
provision discussed in the foregoing paragraphs describing the
issuance of first mortgage bonds on the basis of property
additions as follows:
1. to permit the issuance of first mortgage bonds on the
basis of 80% of the cost or fair value, whichever is less, of
unfunded property additions after adjustments to offset
retirements; and
2. to modify the net earnings test
a. to provide that the period over which we will calculate
net earnings will be 12 consecutive months of the preceding
18 months,
b. to specifically permit the inclusion in net earnings of
revenues collected subject to possible refund and allowances for
funds used during construction, and
c. to provide for no deduction for non-recurring charges.
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We have also reserved the right to amend the mortgage without
any consent or other action by holders of any first mortgage
bonds to include nuclear fuel, and similar or analogous devices
or substances, as property additions. We have also reserved the
right to amend the mortgage without any consent or other action
of the holders of any first mortgage bonds created after
June 30, 1978 to make any form of space satellites
including solar power satellites, space stations and other
analogous facilities available as property additions. Since all
of the first mortgage bonds issued on or prior to June 30,
1978 have matured or have been redeemed and are no longer
outstanding under the mortgage, we may exercise this right to
amend the mortgage at any time.
No first mortgage bonds may be issued on the basis of property
additions subject to qualified liens if the qualified lien bonds
secured thereby exceed 50% of such property additions, or if the
qualified lien bonds and first mortgage bonds then outstanding
which have been issued against property additions subject to
continuing qualified liens and certain other items would in the
aggregate exceed 15% of the first mortgage bonds and qualified
lien bonds outstanding.
Release
and Substitution of Property
We may release property from the lien of the mortgage, without
applying an earnings test, on the following bases:
1. the deposit of cash or, to a limited extent, purchase
money mortgages;
2. property additions, after adjustments in certain cases
to offset retirements and after making adjustments for qualified
lien bonds, if any, outstanding against property
additions; and
3. a waiver of the right to issue first mortgage bonds on
the basis of retired bond credits.
We can withdraw cash upon the bases stated in clause (2)
and/or (3) above without applying an earnings test.
If unfunded property is released, the property additions used to
effect the release may become available again as credits under
the mortgage and the waiver of the right to issue first mortgage
bonds on the basis of retired bond credits to effect the release
may cease to be effective as such a waiver. Similar provisions
are in effect as to cash proceeds of such property. The mortgage
also contains special provisions with respect to qualified lien
bonds pledged and the disposition of moneys received on pledged
prior lien bonds.
We have reserved the right to amend the mortgage without any
consent or other action by the holders of any series of first
mortgage bonds created after February 29, 1996
1. to permit the release of property from the lien of the
mortgage in an amount equal to the aggregate principal amount of
retired bonds that we elect to use as the basis for such release
times the reciprocal of the bonding ratio in effect when such
retired bonds were originally issued;
2. to permit the release of unfunded property so long as we
have at least $1 in unfunded property additions remaining;
3. to remove the existing limitation on the amount of
obligations secured by purchase money mortgages upon any
property being released that can be used as the basis for such
release;
4. to specifically provide that if we transfer all or
substantially all of our property subject to the mortgage to a
successor corporation (as defined in the mortgage), we would be
released from all obligations under the mortgage; and
5. to change the definition of Funded Property
to mean only property we specify with a fair value, to be
determined by an independent expert, of not less than 10/8% of
the sum of the amount of outstanding first mortgage bonds and
retired bond credits.
Distribution
Covenant
The terms of outstanding series of first mortgage bonds include
our covenant to restrict our payment of cash distributions on
our common membership interests in certain circumstances. Any
distribution covenant applicable to a series of first mortgage
bonds issued and sold under this prospectus will be described in
the prospectus supplement relating to that series of first
mortgage bonds. There is no assurance that the terms of future
distribution covenants, if any, will be the same as those
applicable to our outstanding first mortgage bonds.
7
Modification
Your rights as a bondholder may be modified with the consent of
the holders of
66
2
/
3
%
of the outstanding first mortgage bonds, and, if less than all
series of first mortgage bonds are affected, the consent also of
holders of
66
2
/
3
%
of the outstanding first mortgage bonds of each series affected.
In general, no modification of the terms
1. of payment of principal or interest;
2. affecting the lien of the mortgage; or
3. reducing the percentage required for modification;
is effective against any bondholder without that
bondholders consent.
We have reserved the right to amend the mortgage without any
consent or other action by the holders of any series of first
mortgage bonds created after February 29, 1996
1. to reduce the percentage vote required to modify certain
rights of the holders of the first mortgage bonds to a majority
of the holders of all outstanding first mortgage bonds;
2. to provide that if a proposed change affects less than
all series of outstanding first mortgage bonds, then only the
consent of a majority of the first mortgage bonds of each series
affected is required to make this change; and
3. to permit us to amend the mortgage without the consent
of the holders of first mortgage bonds to make changes which do
not adversely affect the interests of the holders in any
material respect.
Defaults
Defaults under the mortgage include:
1. default in the payment of principal;
2. default for 60 days in the payment of interest or
installments of funds for the retirement of first mortgage bonds;
3. certain events of bankruptcy, insolvency or
reorganization;
4. defaults with respect to qualified lien bonds; and
5. default in other covenants for 90 days after notice.
The trustees may withhold notice of default, except in payment
of principal, interest or funds for retirement of first mortgage
bonds, if they determine it is in the best interests of the
holders of the first mortgage bonds.
The corporate trustee or the holders of 25% of the first
mortgage bonds may declare the principal and interest due and
payable on default. However, a majority of the holders may annul
such declaration if the default has been cured. No holder of
first mortgage bonds may enforce the lien of the mortgage
without giving the trustees written notice of a default and
unless
1. the holders of 25% of the first mortgage bonds have
requested the trustees in writing to act and offered them
reasonable opportunity to act and indemnity satisfactory to them
against the costs, expenses and liabilities to be incurred
thereby; and
2. the trustees shall have failed to act.
The holders of a majority of the first mortgage bonds may direct
the time, method and place of conducting any proceedings for any
remedy available to the trustees or exercising any trust or
power conferred upon the trustees.
We are required to file an annual certificate with the trustees
as to compliance with the provisions of the mortgage and as to
the absence of a default with respect to any of the covenants in
the mortgage.
8
DESCRIPTION
OF DEBT SECURITIES
General
The debt securities will be our direct unsecured general
obligations. We will issue the debt securities offered by this
prospectus from time to time in one or more series under one or
more separate indentures between us and the financial
institution(s) that we will name in the applicable prospectus
supplement, as trustee. This indenture or indentures are
collectively referred to in this prospectus as the
indenture.
The following description summarizes certain general terms and
provisions of the debt securities offered by this prospectus.
This summary is not complete and should be read together with
the prospectus supplement describing the specific terms of the
debt securities. The form of the indenture is filed as an
exhibit to the registration statement of which this prospectus
forms a part. You should read the indenture for provisions that
may be important to you. The indenture will be qualified under
the Trust Indenture Act of 1939. You should refer to the
Trust Indenture Act of 1939 for provisions that apply to
the debt securities. Whenever particular provisions or defined
terms in the indenture are referred to under this heading
Description of Debt Securities, those provisions or
defined terms are incorporated by reference in this prospectus.
The debt securities will rank equally with all of our other
unsecured and unsubordinated debt. As of June 30, 2006, we
did not have any unsecured and unsubordinated debt outstanding
that would have ranked equally with the debt securities.
The debt securities will be effectively subordinated to all of
our secured debt, including our first mortgage bonds. As of
June 30, 2006, we had approximately $1,068 million
principal amount of secured debt outstanding.
Terms of
Specific Series of the Debt Securities
A prospectus supplement relating to each series of debt
securities offered by this prospectus will include a description
of the specific terms relating to the offering of that series.
These terms will include any of the following terms that apply
to that series:
1. the title of the debt securities;
2. the total principal amount of the debt securities;
3. the date or dates on which the principal of the debt
securities will be payable or how the date or dates will be
determined;
4. the rate or rates at which the debt securities will bear
interest, or how the rate or rates will be determined, the date
or dates from which any such interest will accrue, the interest
payment dates for the debt securities and the regular record
dates for interest payments;
5. the percentage, if less than 100%, of the principal
amount of the debt securities that will be payable if the
maturity of the debt securities is accelerated;
6. any period or periods within which, or any date or dates
on which, and the price or prices at which and the terms and
conditions upon which, we may redeem the debt securities at our
option and any restrictions on those redemptions;
7. any sinking fund or other provisions or options held by
holders of debt securities that would obligate us to repurchase
or otherwise redeem the debt securities;
8. any changes or additions to the events of default under
the indenture or changes or additions to our covenants under the
indenture;
9. if the debt securities will be issued in denominations
other than $1,000;
10. if payments on the debt securities may be made in a
currency or currencies other than United States dollars;
11. any collateral, security, assurance or guarantee for
the debt securities; and
12. any other terms of the debt securities not inconsistent
with the terms of the indenture.
The indenture does not limit the principal amount of debt
securities that we may issue under the indenture.
9
We may sell debt securities at a discount below their principal
amount. We may describe in the applicable prospectus supplement
United States federal income tax considerations applicable to
debt securities sold at an original issue discount. In addition,
we may describe in the applicable prospectus supplement
important United States federal income tax or other tax
considerations applicable to any debt securities denominated or
payable in a currency or currency unit other than United States
dollars.
Except as we may otherwise describe in the applicable prospectus
supplement, the covenants contained in the indenture will not
afford holders of debt securities protection in the event of a
highly-leveraged or similar transaction involving us or in the
event of a change of control.
Payment
and Paying Agents
Except as we may otherwise provide in the applicable prospectus
supplement, we will pay interest, if any, on each debt security
payable on each interest payment date to the person in whose
name that debt security is registered as of the close of
business on the regular record date for that interest payment
date. However, interest payable at maturity will be paid to the
person to whom the principal is paid. If there has been a
default in the payment of interest on any debt security, the
defaulted interest may be paid to the holder of such debt
security as of the close of business on a date to be fixed by
the trustee between 10 and 15 days prior to the date
proposed by us for payment of such defaulted interest or in any
other manner permitted by any securities exchange on which that
debt security may be listed, if the trustee finds it practicable.
Unless we otherwise specify in the applicable prospectus
supplement, principal of, and premium, if any, and interest on
the debt securities at maturity will be payable upon
presentation of the debt securities at the corporate trust
office of the trustee in The City of New York, as our paying
agent. We may change the place of payment on the debt
securities, may appoint one or more additional paying agents,
including us, and may remove any paying agent, all at our
discretion.
As long as the debt securities are registered in the name of The
Depository Trust Company, or DTC, or its nominee, as
described under the heading Book-Entry Only
Securities, payments of principal, premium, if any, and
interest will be made to DTC for subsequent disbursement to
beneficial owners of the debt securities.
Registration
and Transfer
Unless we otherwise specify in the applicable prospectus
supplement, and subject to restrictions related to the issuance
of debt securities through DTCs book-entry system, the
transfer of debt securities may be registered, and debt
securities may be exchanged for other debt securities of the
same series or tranche, of authorized denominations and with the
same terms and principal amount, at the corporate trust office
of the trustee in The City of New York. We may change the
place for registration of transfer and exchange of the debt
securities and may designate additional places for registration
and exchange. Unless we otherwise provide in the applicable
prospectus supplement, no service charge will be made for any
registration of transfer or exchange of the debt securities.
However, we may require payment to cover any tax or other
governmental charge that may be imposed. We will not be required
to execute or to provide for the registration of transfer of, or
the exchange of, (1) any debt security during the
15 days prior to giving any notice of redemption or
(2) any debt security selected for redemption, except the
unredeemed portion of any debt security being redeemed in part.
Satisfaction
and Discharge
Subject to certain conditions, we will be discharged from our
obligations on the debt securities of a particular series if we
deposit with the trustee sufficient cash or government
securities to pay the principal, interest, any premium and any
other sums when due on the stated maturity date or a redemption
date of that series of debt securities.
The indenture will be deemed satisfied and discharged when no
debt securities remain outstanding and when we have paid all
other sums payable by us under the indenture.
10
Consolidation,
Merger and Sale of Assets
Under the terms of the indenture, we may not consolidate with or
merge into any other entity or convey, or transfer or lease our
properties and assets substantially as an entirety to any
entity, unless:
1. the surviving or successor entity is organized and
validly existing under the laws of any domestic jurisdiction and
it expressly assumes our payment obligations on all outstanding
debt securities and our obligations under the indenture;
2. immediately after giving effect to the transaction, no
event of default and no event which, after notice or lapse of
time or both, would become an event of default, shall have
occurred and be continuing; and
3. we shall have delivered to the trustee an officers
certificate and an opinion of counsel as provided in the
indenture.
Upon the consummation of any such transaction, the surviving
entity or successor entity will succeed to our rights and powers
under the indenture and, except in the case of a lease, we shall
be relieved of all obligations and covenants under the indenture
and the outstanding debt securities. So long as we comply with
the conditions in clauses (2) and (3) above, the terms
of the indenture do not preclude us from being a party to a
merger in which we are the surviving entity.
Events of
Default
Event of default
, when used in the indenture
with respect to any series of debt securities, means any of the
following:
1. failure to pay interest on any debt security of that
series for 60 days after it is due;
2. failure to pay the principal of or any premium on any
debt security of that series when due;
3. failure to perform any other covenant in the indenture,
other than a covenant that does not relate to that series of
debt securities, that continues for 60 days after we
receive written notice from the trustee, or after we and the
trustee receive a written notice from the holders of at least
33% in principal amount of the outstanding debt securities of
that series; however, the trustee or the trustee and the holders
of that principal amount of debt securities of that series can
agree to an extension of the 60 day period and such an
agreement to extend will be automatically deemed to occur if we
are diligently pursuing action to correct the default;
4. events in bankruptcy, insolvency or our reorganization
specified in the indenture; or
5. any other event of default specified for that series of
debt securities.
An event of default for a particular series of debt securities
does not necessarily constitute an event of default for any
other series of debt securities issued under the indenture. The
trustee may withhold notice to the holders of debt securities of
any default, except default in the payment of principal, premium
or interest, if it considers the withholding of notice to be in
the interests of holders.
Remedies
Acceleration
of Maturity
If an event of default for any series of debt securities occurs
and continues, then either the trustee or the holders of at
least 33% in principal amount of that series may declare the
entire principal amount of all the debt securities of that
series, together with accrued interest, to be due and payable
immediately. However, if the event of default is applicable to
more than one series of debt securities under the indenture,
only the trustee or holders of at least 33% in aggregate
principal amount of the outstanding debt securities of all
affected series, voting as one class, and not the holders of any
one series, may make that declaration of acceleration.
At any time after a declaration of acceleration with respect to
the debt securities of any series has been made and before a
judgment or decree for payment of the money due has been
obtained, the event of default giving rise to that declaration
of acceleration will be considered waived, and that declaration
and its consequences will be considered rescinded and annulled,
if:
1. we have paid or deposited with the trustee a sum
sufficient to pay:
a. all overdue interest on all debt securities of that
series;
11
b. the principal of and premium, if any, on any debt
securities of that series which have otherwise become due and
interest that is currently due;
c. interest on overdue interest; and
d. all amounts due to the trustee under the
indenture; and
2. any other event of default with respect to the debt
securities of that series has been cured or waived as provided
in the indenture.
However, no such waiver or recission and annulment shall extend
to or shall effect any subsequent default or impair any related
right.
There is no automatic acceleration, even in the event of our
bankruptcy, insolvency or reorganization.
Right
to Direct Proceedings
Other than its duties in case of an event of default, the
trustee is not obligated to exercise any of its rights or powers
under the indenture at the request, order or direction of any of
the holders, unless the holders offer the trustee reasonable
security or indemnity. If they provide this reasonable security
or indemnity, the holders of a majority in principal amount of
any series of debt securities will have the right to direct the
time, method and place of conducting any proceeding for any
remedy available to the trustee, or exercising any power
conferred upon the trustee. However, if the event of default
relates to more than one series of debt securities, only the
holders of a majority in aggregate principal amount of all
affected series, voting as one class, will have the right to
give this direction and not the holders of any one series. The
trustee is not obligated to comply with directions that conflict
with law or other provisions of the indenture.
Limitation
on Right to Institute Proceedings
No holder of debt securities of any series will have any right
to institute any proceeding under the indenture, or any remedy
under the indenture, unless:
1. the holder has previously given to the trustee written
notice of a continuing event of default;
2. the holders of a majority in aggregate principal amount
of the outstanding debt securities of all series in respect of
which an event of default shall have occurred and be continuing
have made a written request to the trustee, and have offered
reasonable indemnity to the trustee to institute
proceedings; and
3. the trustee has failed to institute any proceeding for
60 days after that notice, request and offer of indemnity.
However, these limitations do not apply to a suit by a holder of
a debt security for payment of the principal, premium, if any,
or interest on that debt security on or after the applicable due
date.
Annual
Notice to Trustee
We will provide to the trustee an annual statement by an
appropriate officer as to our compliance with all conditions and
covenants under the indenture.
Modification
and Waiver
Without the consent of any holder of debt securities, we may
enter into one or more supplemental indentures for any of the
following purposes:
1. to evidence the assumption by any permitted successor of
our covenants in the indenture and in the debt securities;
2. to add additional covenants or to surrender any of our
rights or powers under the indenture;
3. to add additional events of default;
4. to change or eliminate any provision of the indenture or
to add any new provision to the indenture; provided, however, if
the change, elimination or addition will adversely affect the
interests of the holders of
12
debt securities of any series in any material respect, the
change, elimination or addition will become effective only:
a. when the consent of the holders of debt securities of
that series has been obtained in accordance with the
indenture; or
b. when no debt securities of the affected series remain
outstanding under the indenture;
5. to provide collateral security for all but not part of
the debt securities;
6. to establish the form or terms of debt securities of any
series as permitted by the indenture;
7. to provide for the authentication and delivery of bearer
securities and coupons attached thereto;
8. to evidence and provide for the acceptance of
appointment of a successor trustee;
9. to provide for the procedures required for use of a
non-certificated system of registration for the debt securities
of all or any series;
10. to change any place where principal, premium, if any,
and interest shall be payable, debt securities may be
surrendered for registration of transfer or exchange and notices
to us may be served; or
11. to cure any ambiguity or inconsistency or to make any
other change to the provisions or to add other provisions with
respect to matters or questions arising under the indenture;
provided that the action does not adversely affect the interests
of the holders of debt securities of any series in any material
respect.
The holders of a majority in aggregate principal amount of the
debt securities of all series then outstanding may waive our
compliance with some restrictive provisions of the indenture.
The holders of a majority in principal amount of the outstanding
debt securities of any series may waive any past default under
the indenture with respect to that series, except a default in
the payment of principal, premium, if any, or interest and
certain covenants and provisions of the indenture that cannot be
modified or be amended without the consent of the holder of each
outstanding debt security of the series affected.
If the Trust Indenture Act of 1939 is amended after the
date of the indenture in such a way as to require changes to the
indenture, the indenture will be deemed to be amended so as to
conform to that amendment to the Trust Indenture Act of
1939. We and the trustee may, without the consent of any
holders, enter into one or more supplemental indentures to
evidence that amendment.
The consent of the holders of a majority in aggregate principal
amount of the debt securities of all series then outstanding,
voting as one class, is required for all other modifications to
the indenture. However, if less than all of the series of debt
securities outstanding are directly affected by a proposed
supplemental indenture, then the consent only of the holders of
a majority in aggregate principal amount of all series that are
directly affected, voting as one class, will be required. No
supplemental indenture may:
1. change the stated maturity of the principal of, or any
installment of principal of or interest on, any debt security,
or reduce the principal amount of any debt security or its rate
of interest or change the method of calculating the interest
rate or reduce any premium payable upon redemption, or reduce
the amount of principal that would be due and payable upon a
declaration of acceleration of the maturity thereof, or change
the currency in which payments are made, or impair the right to
institute suit for the enforcement of any payment on or after
the stated maturity of any debt security, without the consent of
the holder of that debt security;
2. reduce the percentage in principal amount of the
outstanding debt securities of any series the consent of the
holders of which is required for any supplemental indenture or
any waiver of compliance with a provision of the indenture or
any default thereunder and its consequences, or reduce the
requirements for quorum or voting, without the consent of all
the holders of the series; or
3. modify some of the provisions of the indenture relating
to supplemental indentures, waivers of certain covenants and
waivers of past defaults with respect to the debt securities of
any series, without the consent of the holder of each
outstanding debt security affected thereby.
A supplemental indenture which changes the indenture solely for
the benefit of one or more particular series of debt securities,
or modifies the rights of the holders of debt securities of one
or more series, will not affect the rights under the indenture
of the holders of the debt securities of any other series.
13
The indenture provides that debt securities owned by us or
anyone else required to make payment on the debt securities
shall be disregarded and considered not to be outstanding in
determining whether the required holders have given a request or
consent.
We may fix in advance a record date to determine the required
number of holders entitled to give any request, demand,
authorization, direction, notice, consent, waiver or other such
act of the holders, but we shall have no obligation to do so. If
we fix a record date, that request, demand, authorization,
direction, notice, consent, waiver or other act of the holders
may be given before or after that record date, but only the
holders of record at the close of business on that record date
will be considered holders for the purposes of determining
whether holders of the required percentage of the outstanding
debt securities have authorized or agreed or consented to the
request, demand, authorization, direction, notice, consent,
waiver or other act of the holders. For that purpose, the
outstanding debt securities shall be computed as of the record
date. Any request, demand, authorization, direction, notice,
consent, election, waiver or other act of a holder will bind
every future holder of the same debt securities and the holder
of every debt security issued upon the registration of transfer
of or in exchange of those debt securities. A transferee will be
bound by acts of the trustee or us in reliance thereon, whether
or not notation of that action is made upon the debt security.
Resignation
of Trustee
A trustee may resign at any time by giving written notice to us
or may be removed at any time by act of the holders of a
majority in principal amount of all series of debt securities
then outstanding delivered to the trustee and us. No resignation
or removal of a trustee and no appointment of a successor
trustee will be effective until the acceptance of appointment by
a successor trustee. So long as no event of default or event
which, after notice or lapse of time, or both, would become an
event of default has occurred and is continuing and except with
respect to a trustee appointed by act of the holders, if we have
delivered to the trustee a resolution of our board of directors
appointing a successor trustee and such successor has accepted
the appointment in accordance with the terms of the respective
indenture, the trustee will be deemed to have resigned and the
successor will be deemed to have been appointed as trustee in
accordance with the indenture.
Notices
Notices to holders of debt securities will be given by mail to
the addresses of such holders as they appear in the security
register under the indenture.
Title
We, the trustee, and any of our agents or any agent of the
trustee, may treat the person in whose name debt securities are
registered as the absolute owner thereof, whether or not the
debt securities may be overdue, for the purpose of making
payments and for all other purposes irrespective of notice to
the contrary.
Governing
Law
Each indenture and the debt securities will be governed by, and
construed in accordance with, the laws of the State of New York.
BOOK-ENTRY
ONLY SECURITIES
Unless otherwise specified in the applicable prospectus
supplement, The Depository Trust Company will act as
securities depository for the securities offered through this
prospectus. The securities will be issued as fully registered
securities registered in the name of Cede & Co., the
partnership nominee of DTC or such other name as may be
registered by an authorized representative of DTC. One or more
fully registered security certificates will be issued for each
issue of the securities, in the aggregate principal amount of
such issue, and will be deposited with DTC or its custodian.
DTC is a limited-purpose trust company organized under the New
York Banking Law, a banking organization within the
meaning of the New York Banking Law, a member of the Federal
Reserve System, a clearing corporation within the
meaning of the New York Uniform Commercial Code, and a
clearing agency registered pursuant to the
provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for United States
and foreign equity issues, corporate and municipal debt issues,
and money
14
market instruments from countries that DTC participants
(Direct Participants) deposit with DTC. DTC also
facilitates the post-trade settlement among Direct Participants
of sales and other securities transactions in deposited
securities through electronic computerized book-entry transfers
and pledges between the accounts of Direct Participants, thereby
eliminating the need for physical movement of security
certificates. Direct Participants include both United States and
foreign securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a
wholly owned subsidiary of The Depository Trust &
Clearing Corporation (DTCC). DTCC is, in turn, owned
by a number of Direct Participants of DTC and members of the
National Securities Clearing Corporation, Government Securities
Clearing Corporation, MBS Clearing Corporation, and Emerging
Markets Clearing Corporation, all of which clearing corporations
are subsidiaries of DTCC, as well as by The New York Stock
Exchange, Inc., the American Stock Exchange LLC, and the
National Association of Securities Dealers, Inc. Access to the
DTC system is also available to other entities such as both
United States and foreign securities brokers and dealers, banks,
trust companies, and clearing corporations that clear through or
maintain a custodial relationship with a Direct Participant,
either directly or indirectly (Indirect Participants
and, together with Direct Participants, the
Participants). The DTC rules applicable to its
Participants are on file with the SEC.
Purchases of securities under the DTC system must be made by or
through Direct Participants, which will receive a credit for the
securities on the records of DTC. The ownership interest of each
actual purchaser of each security (Beneficial Owner)
is in turn to be recorded on the records of the Direct
Participant or the Indirect Participant. Beneficial Owners will
not receive written confirmation from DTC of their purchases.
Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct
Participant or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership
interests in the securities are to be accomplished by entries
made on the books of Direct Participants and Indirect
Participants acting on behalf of Beneficial Owners. Beneficial
Owners will not receive certificates representing their
ownership interests in securities, except in the event that use
of the book-entry system for the securities is discontinued.
To facilitate subsequent transfers, all securities deposited by
Direct Participants with DTC are registered in the name of
Cede & Co., the partnership nominee of DTC, or such
other name as may be requested by an authorized representative
of DTC. The deposit of securities with DTC and their
registration in the name of Cede & Co. or such other
DTC nominee do not effect any change in beneficial ownership.
DTC has no knowledge of the actual Beneficial Owners of the
securities; the records of DTC reflect only the identity of the
Direct Participants to whose accounts such securities are
credited, which may or may not be the Beneficial Owners. The
Direct Participants and Indirect Participants will remain
responsible for keeping account of their holdings on behalf of
their customers.
Conveyance of notices and other communications by DTC to Direct
Participants, by Direct Participants to Indirect Participants,
and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them,
subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of securities may
wish to take certain steps to augment the transmission to them
of notices of significant events with respect to the securities,
such as redemptions, tenders, defaults, and proposed amendments
to the mortgage or the indenture, as appropriate. For example,
Beneficial Owners of securities may wish to ascertain that the
nominee holding the securities for their benefit has agreed to
obtain and to transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners may wish to provide their names
and addresses to the corporate trustee or the trustee, as
appropriate, and request that copies of notices be provided
directly to them.
Redemption notices shall be sent to DTC. If less than all the
securities within an issue are being redeemed, the practice of
DTC is to determine by lot the amount of the interest of each
Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. nor any other DTC nominee
will consent or vote with respect to securities unless
authorized by a Direct Participant in accordance with DTC
procedures. Under its usual procedures, DTC mails an omnibus
proxy to us as soon as possible after the record date. The
omnibus proxy assigns the consenting or voting rights of
Cede & Co. to those Direct Participants to whose
accounts securities are credited on the record date, identified
in a listing attached to the omnibus proxy.
Redemption proceeds, principal payments, interest payments, and
any premium payments on the securities will be made to
Cede & Co. or such other nominee as may be requested
by an authorized representative of DTC. The
15
practice of DTC is to credit the accounts of Direct
Participants, upon the receipt by DTC of funds and corresponding
detail information from us or the corporate trustee or the
trustee, as appropriate, on the payable date in accordance with
their respective holdings shown on the records of DTC. Payments
by Participants to Beneficial Owners will be governed by
standing instructions and customary practice, as is the case
with securities held for the accounts of customers in bearer
form or registered in street name, and will be the
responsibility of such Participant and not of DTC or its
nominee, the corporate trustee or the trustee, any underwriters
or dealers or agents, or us, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Payment of redemption proceeds, principal, interest, and any
premium on the securities to Cede & Co. or such other
nominee as may be requested by an authorized representative of
DTC is the responsibility of either the corporate trustee or the
trustee, as appropriate, or us, disbursement of such payments to
Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be
the responsibility of Direct Participants and Indirect
Participants.
A Beneficial Owner shall give notice to elect to have its
securities purchased or tendered, through its Participant, to
the tender or remarketing agent and shall effect delivery of
such securities by causing the Direct Participant to transfer
the interest of the Participant in the securities, on the
records of DTC, to the tender or remarketing agent. The
requirement for physical delivery of securities in connection
with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the securities are
transferred by Direct Participants on the records of DTC and
followed by a book-entry credit of tendered securities to the
DTC account of the tender or remarketing agent.
DTC may discontinue providing its services as depository with
respect to the securities at any time by giving reasonable
notice to the applicable trustee or us. Under such
circumstances, in the event that a successor depository is not
obtained, securities certificates are required to be printed and
delivered.
We may decide to discontinue use of the system of book-entry
transfers through DTC or a successor securities depository. In
that event, security certificates will be printed and delivered.
The information in this section concerning DTC and its
book-entry system has been obtained from sources that we believe
to be reliable, but we take no responsibility for the accuracy
thereof.
EXPERTS
The financial statements, the related financial statement
schedule, and managements report on the effectiveness of
internal control over financial reporting incorporated in this
prospectus by reference from the Companys Annual Report on
Form 10-K
for the year ended December 31, 2005, have been audited by
Deloitte & Touche LLP, an independent registered
public accounting firm, as stated in their reports, which are
incorporated herein by reference (which reports (1) express
an unqualified opinion on the financial statements and financial
statement schedule and include an explanatory paragraph
referring to the Companys change in 2003 in the method of
accounting for asset retirement obligations, (2) express an
unqualified opinion on managements assessment regarding
the effectiveness of internal control over financial reporting,
and (3) express an unqualified opinion on the effectiveness
of internal control over financial reporting), and have been so
incorporated in reliance upon the reports of such firm given
upon their authority as experts in accounting and auditing.
LEGALITY
The legality of the securities will be passed upon for us by
Dawn A. Abuso, Esq., Senior Counsel Corporate
and Securities, of Entergy Services, Inc., Thelen
Reid & Priest LLP, New York, New York, and Clark,
Thomas & Winters, a Professional Corporation, Austin,
Texas. Certain legal matters with respect to the securities will
be passed on for any underwriters, dealers or agents by
Pillsbury Winthrop Shaw Pittman LLP, New York, New York.
Pillsbury Winthrop Shaw Pittman LLP regularly represents us and
our affiliates in connection with various matters. Matters
pertaining to New York law will be passed upon by Thelen
Reid & Priest LLP, New York, New York, matters
pertaining to Louisiana law will be passed upon by Dawn A.
Abuso, Esq., Senior Counsel Corporate and
Securities, of Entergy Services, Inc., and matters pertaining to
Texas law will be passed upon by Clark, Thomas &
Winters, a Professional Corporation, Austin, Texas.
All matters pertaining to franchises, titles to property and the
lien of the mortgage under Louisiana law will be passed upon for
us by Dawn A. Abuso, Esq., Senior Counsel
Corporate and Securities, of Entergy Services, Inc.,
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and all matters pertaining to our organization and certain
matters with respect to the lien of the mortgage under Texas law
will be passed upon for us by Clark, Thomas & Winters,
a Professional Corporation.
The statements in this prospectus as to matters of law and legal
conclusions made under Description of the First Mortgage
Bonds Security, have been reviewed by Dawn A.
Abuso, Esq. and Clark, Thomas & Winters, a
Professional Corporation, and are set forth herein in reliance
upon the opinions of said counsel, and upon their authority as
experts.
PLAN OF
DISTRIBUTION
Methods
and Terms of Sale
We may use a variety of methods to sell the securities including:
1. through one or more underwriters or dealers;
2. directly to one or more purchasers;
3. through one or more agents; or
4. through a combination of any such methods of sale.
The prospectus supplement relating to a particular series of the
securities will set forth the terms of the offering of the
securities, including:
1. the name or names of any underwriters, dealers or agents
and any syndicate of underwriters;
2. the initial public offering price;
3. any underwriting discounts and other items constituting
underwriters compensation;
4. the proceeds we receive from that sale; and
5. any discounts or concessions allowed or reallowed or
paid by any underwriters to dealers.
Underwriters
If we sell the securities through underwriters, they will
acquire the securities for their own account and may resell them
from time to time in one or more transactions, including
negotiated transactions, at a fixed public offering price or at
varying prices determined at the time of sale. The underwriters
for a particular underwritten offering of securities will be
named in the applicable prospectus supplement and, if an
underwriting syndicate is used, the managing underwriter or
underwriters will be named on the cover page of the applicable
prospectus supplement. In connection with the sale of
securities, the underwriters may receive compensation from us or
from purchasers in the form of discounts, concessions or
commissions. The obligations of the underwriters to purchase
securities will be subject to certain conditions. The
underwriters will be obligated to purchase all of the securities
of a particular series if any are purchased. However, the
underwriters may purchase less than all of the securities of a
particular series should certain circumstances involving a
default of one or more underwriters occur.
The initial public offering price and any discounts or
concessions allowed or reallowed or paid to dealers by any
underwriters may be changed from time to time.
Stabilizing
Transactions
Underwriters may engage in stabilizing transactions and
syndicate covering transactions in accordance with Rule 104
under the Exchange Act. Stabilizing transactions permit bids to
purchase the underlying security so long as the stabilizing bids
do not exceed a specified maximum. Syndicate covering
transactions involve purchases of the securities in the open
market after the distribution has been completed in order to
cover syndicate short positions. These stabilizing transactions
and syndicate covering transactions may cause the price of the
securities to be higher than it would otherwise be if such
transactions had not occurred.
Agents
If we sell the securities through agents, the applicable
prospectus supplement will set forth the name of any agent
involved in the offer or sale of the securities as well as any
commissions we will pay to them. Unless otherwise
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indicated in the applicable prospectus supplement, any agent
will be acting on a best efforts basis for the period of its
appointment.
Related
Transactions
Underwriters, dealers and agents (or their affiliates) may
engage in transactions with, or perform services for, us or our
affiliates in the ordinary course of business.
Indemnification
We will agree to indemnify any underwriters, dealers, agents or
purchasers and their controlling persons against certain civil
liabilities, including liabilities under the Securities Act of
1933.
Listing
Unless otherwise specified in the applicable prospectus
supplement, the securities will not be listed on a national
securities exchange or the Nasdaq Stock Market. No assurance can
be given that any broker-dealer will make a market in any series
of the securities and, in any event, no assurance can be given
as to the liquidity of the trading market for any of the
securities.
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