Entergy Arkansas first mortgage bond, Rexford Industrial Realty deals upsized, price

By Stephanie N. Rotondo

Seattle, Aug. 9 – The preferred stock market’s new issue pipeline remained open on Tuesday as Entergy Arkansas Inc. announced plans to sell $25-par first mortgage bonds.

Additionally, Rexford Industrial Realty Inc. priced series A cumulative redeemable preferreds. The offering was first announced on Monday.

Entergy Arkansas came with $410 million of 4.875% first mortgage bonds, in line with price talk.

A trader said there was no selling group. Wells Fargo Securities LLC, BofA Merrill Lynch and Morgan Stanley & Co. LLC ran the books.

“It’s small,” he said of the initially proposed $200 million offering. “The coupon is a little rich for my blood.”

Post-pricing, the trader quoted the issue at $24.90 bid, $24.95 offered.

Meanwhile, Rexford came with $90 million of 5.875% cumulative redeemable preferreds.

When the transaction was first announced on Monday, price talk was 6% and the size was slated to be $75 million.

BofA Merrill Lynch and Wells Fargo led the sale.

A trader said the paper was bid at $24.90 at mid-morning.

The Los Angeles-based real estate investment trust will contribute proceeds to the operating partnership in exchange for series A preferred units. The operating partnership will then use the funds for potential acquisitions and for general corporate purposes.

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