By Stephanie N. Rotondo
Seattle, Aug. 9 – Entergy Arkansas Inc. priced $410 million of 4.875% $25-par first mortgage bonds due Sept. 1, 2066 (expected ratings: A2/A) on Tuesday, a market source reported.
Price talk was in the 4.875% area, the source said.
Wells Fargo Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC are the joint bookrunners.
Interest is payable on the first day of March, June, September and December, beginning Dec. 1. The bonds become redeemable on or after Sept. 1, 2021 at par plus accrued interest.
The notes will be listed on the New York Stock Exchange.
Proceeds will be used, along with available funds, to redeem $85 million of preferred stock paying dividends at 6.08% to 6.45%, to redeem $325 million of first mortgage bonds maturing between 2033 and 2040 that pay interest between 5.75% and 5.9% and for general corporate purposes.
Entergy Arkansas is a subsidiary of New Orleans-based power provider Entergy Corp.
| Issuer: | Entergy Arkansas Inc.
|
| Securities: | First mortgage bonds
|
| Amount: | $410 million
|
| Maturity: | Sept. 1, 2066
|
| Bookrunners: | Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Goldman Sachs & Co., Ramirez & Co. Inc.
|
| Coupon: | 4.875%
|
| Price: | Par of $25
|
| Yield: | 4.875%
|
| Talk: | 4.875%
|
| Call options: | On or after Sept. 1, 2021 at par plus accrued interest
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 16
|
| Expected ratings: | Moody’s: A2
|
| S&P: A
|
| Expected listing: | NYSE
|
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