By Rebecca Melvin and Cristal Cody
New York, March 24 – Entergy Arkansas, LLC priced $400 million of 3.35% first mortgage bonds due June 15, 2052 (A2/A) at 99.378 to yield 3.382% and a spread over Treasuries of 105 basis points, according to an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 130 bps area, according to a market source.
The bonds have a make-whole call and then a par call.
Barclays, Citigroup Global Markets Inc., Regions Securities LLC, Stephens Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used to acquire the Searcy Power Station, to repay some debt, including the company's $150 million long-term revolving credit facility and its $25 million short-term revolving credit facility, and for general corporate purposes.
Entergy Arkansas is a Little Rock, Ark.-based energy provider.
| Issuer: | Entergy Arkansas LLC
|
| Amount: | $400 million
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| Description: | First mortgage bonds
|
| Maturity: | June 15, 2052
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Regions Securities LLC, Stephens Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
|
| Co-manager: | Loop Capital Markets LLC
|
| Coupon: | 3.35%
|
| Price: | 99.378
|
| Yield: | 3.382%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Dec. 15, 2051 at Treasuries plus 20 bps; thereafter at par
|
| Trade date: | March 24
|
| Settlement date: | March 30
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 130 bps area
|
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