By Devika Patel
Knoxville, Tenn., May 8 – Entergy Arkansas Inc. priced $250 million of 10-year 4% first mortgage bonds (A2/A) at a spread of 103 basis points over Treasuries on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.932 to yield 4.008%.
Barclays, BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc., SMBC Nikko and Stephens Inc. are the bookrunners.
Proceeds will be used to redeem $31.35 million of the company’s preferred stock, which pay dividends at 4.32% to 4.72% per year, and for general corporate purposes.
Entergy Arkansas is a Little Rock, Ark.-based energy provider.
| Issuer: | Entergy Arkansas Inc.
|
| Amount: | $250 million
|
| Securities: | First mortgage bonds
|
| Maturity: | June 1, 2028
|
| Bookrunners: | Barclays, BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc., SMBC Nikko and Stephens Inc.
|
| Coupon: | 4%
|
| Price: | 99.932
|
| Yield: | 4.008%
|
| Spread: | Treasuries plus 103 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until March 1, 2028; thereafter at par
|
| Trade date: | May 8
|
| Settlement date: | May 11
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
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