By Andrea Heisinger
New York, Nov. 9 - Entergy Arkansas, Inc. priced $350 million of 3.75% first mortgage bonds due Feb. 15, 2021 on Tuesday at a spread of Treasuries plus 110 basis points, according to an FWP filing with the Securities and Exchange Commission.
The notes (A3/A-/) priced at 99.971 to yield 3.754%. They are callable at a make-whole amount of Treasuries plus 20 bps until Nov. 15, 2020 and after that date at par.
Goldman Sachs & Co., RBS Securities Inc., Scotia Capital (USA) Inc. and Stephens Inc. were the bookrunners.
Co-managers were Daiwa Securities America Inc., U.S. Bancorp Investments, Aladdin Capital LLC and Loop Capital Markets LLC.
Proceeds are being used to repay $150 million of 5.4% mortgage bonds due 2018, to repay $120 million of Pope County Arkansas 6.3% pollution control revenue refunding bonds due Nov. 1, 2020 and $19.5 million of 6.3% pollution control bonds due Dec. 1, 2016, and for general corporate purposes.
The utility company is based in Little Rock, Ark.
| Issuer: | Entergy Arkansas, Inc.
|
| Issue: | First mortgage bonds
|
| Amount: | $350 million
|
| Maturity: | Feb. 15, 2021
|
| Bookrunners: | Goldman Sachs & Co., RBS Securities Inc., Scotia Capital (USA) Inc., Stephens Inc.
|
| Co-managers: | Daiwa Securities America Inc., U.S. Bancorp Investments, Aladdin Capital LLC, Loop Capital Markets LLC
|
| Coupon: | 3.75%
|
| Price: | 99.971
|
| Yield: | 3.754%
|
| Spread: | Treasuries plus 110 bps
|
| Call: | Make-whole at Treasuries plus 20 bps before Nov. 15, 2020, and after at par
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 12
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: A-
|
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