By Cristal Cody
Tupelo, Miss., May 9 – Entergy Arkansas Inc. priced a $220 million add-on to its 3.5% first mortgage bonds due April 1, 2026 on Tuesday at a spread of 80 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The bonds (A2/A) priced at 102.208 to yield 3.205%.
J.P. Morgan Securities LLC, BofA Merrill Lynch, Stephens Inc. and Wells Fargo Securities LLC were the bookrunners.
The company originally sold $325 million of the notes on Jan. 5, 2016 at 99.671 to yield 3.539% with a spread of 130 bps over Treasuries. Entergy Arkansas 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 total outstanding now is $600 million.
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.
| Issuer: | Entergy Arkansas Inc.
|
| Amount: | $220 million reopening
|
| Description: | First mortgage bonds
|
| Maturity: | April 1, 2026
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Merrill Lynch, Stephens Inc. and Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Mischler Financial Group, Inc. and Williams Capital Group LP
|
| Coupon: | 3.5%
|
| Price: | 102.208
|
| Yield: | 3.205%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Jan. 1, 2026; thereafter at par
|
| Trade date: | May 9
|
| Settlement date: | May 16
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Total outstanding: | $600 million, including $325 million priced on Jan. 5, 2016 at 130 bps spread and a $55 million add-on priced on June 13, 2016 at 90 bps over Treasuries
|
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