By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 8 – System Energy Resources, Inc. sold $325 million of 6% first mortgage bonds due April 15, 2028 (Baa1/A) on Wednesday at 96.196 to yield 6.897%, according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of Treasuries plus 255 basis points versus talk in the 300 bps area, according to a market source.
Morgan Stanley & Co. LLC and RBC Capital Markets, LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including the repayment of borrowings from the Entergy system money pool, which is an intercompany borrowing arrangement designed to reduce the Entergy utility subsidiaries’ dependence on short-term borrowings.
System Energy is a Jackson, Miss.-based nuclear power company and a subsidiary of Entergy Corp.
| Issuer: | System Energy Resources, Inc.
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| Amount: | $325 million
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| Issue: | First mortgage bonds
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| Maturity: | April 15, 2028
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| Bookrunners: | Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
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| Co-manager: | Independence Point Securities LLC
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| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP (New York law), Friday, Eldredge & Clark, LLP (Arkansas law) and Wise Carter Child & Caraway, Professional Association (Mississippi law)
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Coupon: | 6%
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| Price: | 96.196
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| Yield: | 6.897%
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| Spread: | Treasuries plus 255 bps
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| Call feature: | Make-whole call before March 15, 2028 at Treasuries plus 40 bps; thereafter at par
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| Trade date: | March 8
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| Settlement date: | March 14
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| Ratings: | Moody’s: Baa1
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| S&P: A
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 300 bps area
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| Cusip: | 871911AU7
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