By Wendy Van Sickle
Columbus, Ohio, Aug. 8 – Entergy Texas Inc. priced $350 million of 5.8% first mortgage bonds due Sept. 1, 2053 (A3/A) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 99.656 to yield 5.824%, or a spread of 160 basis points over Treasuries.
The bonds feature a make-whole call and then a par call.
BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC, Regions Securities LLC and Scotia Capital (USA) are the bookrunners.
The company plans to use proceeds from the new notes to finance, together with other available funds, the construction of the Orange County Advanced Power Station; to repay its borrowings under the Entergy system money pool, totaling about $23 million at Aug. 4 and bearing interest at the weighted average rate of 5.22% per year; and for general corporate purposes. Pending application of the net proceeds, the company may invest them in short-term, highly liquid, high-rated money market instruments or the Entergy system money pool.
The Woodlands, Tex.-based Entergy is a public electric utility company.
| Issuer: | Entergy Texas Inc.
|
| Amount: | $350 million
|
| Issue: | First mortgage bonds
|
| Maturity: | Sept. 1, 2053
|
| Bookrunners: | BNP Paribas Securities Corp., BofA Securities, Inc., Goldman Sachs & Co. LLC, Regions Securities LLC and Scotia Capital (USA)
|
| Co-manager: | Siebert Williams Shank & Co., LLC
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | Morgan, Lewis & Bockius LLP (New York law) and Jennings, Strouss & Salmon, PLLC (Texas law)
|
| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
|
| Coupon: | 5.8%
|
| Price: | 99.656
|
| Yield: | 5.824%
|
| Spread: | Treasuries plus 160 bps
|
| Call option: | Make-whole call at Treasuries plus 25 bps prior to March 1, 2053; par call after that
|
| Trade date: | Aug. 8
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
| Cusip: | 29365TAN4
|
|
|
© 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.
