Entergy Arkansas plans add-on of 3.5% first mortgage bonds due 2026

By Devika Patel

Knoxville, Tenn., May 9 – Entergy Arkansas Inc. is eyeing an additional sale of its 3.5% first mortgage bonds due April 1, 2026, according to a 424B3 filed with the Securities and Exchange Commission.

The company sold $325 million of the notes on Jan. 5, 2016 at 99.671 to yield 3.539% with a spread of 130 basis points over Treasuries.

It sold an additional $55 million of the notes on June 13, 2016 at 108.3 to yield 2.516%, or 90 bps over Treasuries.

The notes have a make-whole call at Treasuries plus 20 bps until Jan. 1, 2026, and then are callable at par.

BofA Merrill Lynch, J.P. Morgan Securities LLC, Stephens Inc. and Wells Fargo Securities LLC are the bookrunners. BNY Mellon Capital Markets LLC, Mischler Financial Group, Inc. and Williams Capital Group LP are the co-managers.

Proceeds will be used to repay at maturity $54.7 million of 1.55% pollution control revenue refunding bonds due October 2017 and for general corporate purposes.

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

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