Published on 3/4/2024 in the Prospect News Investment Grade Daily.
New Issue: Entergy Louisiana prices $1.2 billion of mortgage bonds in two parts
By Wendy Van Sickle
Columbus, Ohio, March 4 – Entergy Louisiana LLC priced $1.2 billion of collateral trust mortgage bonds (A2/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $500 million of 5.35% 10-year bonds at 99.822 to yield 5.373%, or a spread of 115 basis points over Treasuries.
A $700 million tranche of 5.7% 30-year collateral trust mortgage bonds priced with a Treasuries plus 135 bps spread. The notes were sold at 99.856 to yield 5.71%.
Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. were the bookrunners.
The company intends to use proceeds from the sale of the bonds, together with other available funds, to repay or redeem on or prior to maturity the outstanding $1 billion aggregate principal amount of its 0.95% collateral trust mortgage bonds due Oct. 1, 2024; to repay or redeem on or prior to maturity its outstanding $400 million of 5.4% first mortgage bonds due Nov. 1, 2024; to repay debt incurred under its $350 million revolving credit facility that expires in June 2028; for capital expenditures; or for general corporate purposes.
The electric utility is based in Jefferson, La.
| Issuer: | Entergy Louisiana, LLC
|
| Amount: | $1.2 billion
|
| Issue: | Collateral trust mortgage bonds
|
| Bookrunners: | Barclays, Mizuho Securities USA LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC, BNY Mellon Capital Markets, LLC, Goldman Sachs & Co. LLC, Regions Securities LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-manager: | R. Seelaus & Co. Inc.
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house (Louisiana law), Morgan, Lewis & Bockius LLP (New York law), Duggins Wren Mann & Romero, LLP (Texas law)
|
| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
|
| Trade date: | March 4
|
| Settlement date: | March 8
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Bonds due 2034
|
| Amount: | $500 million
|
| Maturity: | March 15, 2034
|
| Coupon: | 5.35%
|
| Price: | 99.822
|
| Yield: | 5.373%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call before Dec. 15, 2033 at Treasuries plus 20 bps; thereafter at par
|
| Cusip: | 29364WBM9
|
|
|
| Bonds due 2054
|
| Amount: | $700 million
|
| Maturity: | March 15, 2054
|
| Coupon: | 5.7%
|
| Price: | 99.856
|
| Yield: | 5.71%
|
| Spread: | Treasuries plus 135 bps
|
| Call feature: | Make-whole call before Sept. 15, 2053 at Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 29364WBN7
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
