By Cristal Cody
Eureka Springs, Ark., June 13 – Entergy Arkansas, Inc. sold a $55 million add-on to its 3.5% first mortgage bonds due April 1, 2026 with a spread of 90 basis points over Treasuries, according to a FWP filing with Securities and Exchange Commission on Monday.
The bonds priced at 108.30 to yield 2.516%.
Morgan Stanley & Co. LLC and Stephens Inc. were the bookrunners.
The company originally sold $325 million of the bonds on Jan. 5 at 99.671 to yield 3.539%, and 130 bps over Treasuries.
With the add on, the total outstanding is $380 million.
Proceeds will be used to redeem, prior to maturity, $60 million of the company’s 6.38% first mortgage bonds due November 2034 and for general corporate purposes.
Entergy Arkansas is a Little Rock, Ark.-based power provider.
Issuer: | Entergy Arkansas, Inc.
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Amount: | $55 million reopening
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Maturity: | April 1, 2026
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Securities: | First mortgage bonds
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Bookrunners: | Morgan Stanley & Co. LLC and Stephens Inc.
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Coupon: | 3.5%
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Price: | 108.30
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Yield: | 2.516%
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Spread: | Treasuries plus 90 bps
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Call feature: | Make-whole call before Jan. 1, 2026 at Treasuries plus 20 bps, then at par
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Pricing date: | June 13
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Settlement date: | June 16
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Ratings: | Moody’s: A2
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| S&P: A-
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Distribution: | SEC registered
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Total outstanding: | $380 million
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