Entergy Louisiana sells upsized $25-par mortgage bonds; Entergy Arkansas’ issue not free

By Stephanie N. Rotondo

Seattle, Aug. 10 – The preferred stock primary market got another Entergy-linked deal on Wednesday, as Entergy Louisiana LLC brought $270 million of 4.875% $25-par collateral trust mortgage bonds due 2066.

That issue comes on the heels of Entergy Arkansas Inc.’s $410 million sale of 4.875% $25-par first mortgage bonds due 2066 on Tuesday.

“It looks like they are going to do more small deals out of each one of these,” a trader said, referring to each of Entergy Corp.’s subsidiaries.

At 4.875%, price talk on the new issue was in line with the Entergy Arkansas paper, the trader added.

Upon pricing, a trader pegged the new notes at $24.70 bid, $24.75 offered.

The Entergy Louisiana deal came upsized from $150 million.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC ran the books – the same underwriters as the Entergy Arkansas deal.

As for Entergy Arkansas, it was pegged at $24.95 bid, par offered at mid-morning but slid to $24.88 bid, $24.90 offered just before the bell.

A trader noted that the Arkansas paper had not freed to trade as of 3:30 p.m. ET.

Elsewhere in the new issue market, Gladstone Land Corp. announced a $25 million sale of 6.375% series A cumulative term preferred stock.

Price talk was 6.5%, according to a market source.

Janney Montgomery Scott LLC led the deal.

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