New Issue: Entergy Arkansas sells $325 million 3.5% 10-year bonds at Treasuries plus 130 bps

By Aleesia Forni

New York, Jan. 5 – Entergy Arkansas Inc. priced a $325 million offering of 3.5% 10-year first mortgage bonds at 130 basis points over Treasuries on Tuesday, according to a market source and an FWP filed with the Securities and Exchange Commission.

The notes (A3/A-) sold at 99.671 to yield 3.539%.

BNY Mellon Capital Markets LLC, Goldman Sachs & Co., Scotia Capital (USA) and Stephens Inc. were the bookrunners.

Proceeds will be used to finance the purchase of a power block at the Union Power Station from Union Power Partners, LP for roughly $237 million, to redeem the company’s $175 million of 5.66% first mortgage bonds due February 2025 and for general corporate purposes.

Entergy Arkansas is a Little Rock, Ark.-based energy provider.

Issuer:	Entergy Arkansas Inc.
Amount:	$325 million
Description:	First mortgage bonds
Maturity:	April 1, 2026
Bookrunners:	BNY Mellon Capital Markets LLC, Goldman Sachs & Co., Scotia Capital (USA), Stephens Inc.
Co-managers:	Regions Securities LLC, Mischler Financial Group Inc., Williams Capital Group LP
Coupon:	3.5%
Price:	99.671
Yield:	3.539%
Spread:	Treasuries plus 130 bps
Make-whole call:	Treasuries plus 20 bps prior to Jan. 1, 2026, then callable at par
Trade date:	Jan. 5
Settlement date:	Jan. 8
Ratings:	Moody’s: A3
	Standard & Poor’s: A-
Distribution:	SEC registered
Price guidance:	Treasuries plus 135 bps area, tightened from Treasuries plus 155 bps area

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