Published on 8/14/2023 in the Prospect News Investment Grade Daily.
New Issue: Entergy Arkansas sells $300 million 5.3% bonds due 2033 at 120 bps over Treasuries
By Wendy Van Sickle
Columbus, Ohio, Aug. 14 – Entergy Arkansas, LLC priced $300 million of 5.3% 10-year first mortgage bonds (A2/A) at 99.439 to yield 5.372%, or 120 basis points over Treasuries, on Monday, according to an FWP filing with the Securities and Exchange Commission.
The bonds have a make-whole call and then a par call.
Citibank Global Markets, Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and Stephens Inc. are the bookrunners.
Proceeds will be used to repay debt incurred under the company’s $150 million revolving credit facility which expires in June 2028, to repay borrowings under the Entergy system money pool and/or for general corporate purposes. Under the Entergy system money pool Entergy had approximately $132 million of outstanding obligations bearing interest at the weighted average rate of 5.22% per year as of Aug. 9.
Entergy Arkansas is a Little Rock, Ark.-based energy provider.
| Issuer: | Entergy Arkansas LLC
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| Amount: | $300 million
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| Issue: | First mortgage bonds
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| Maturity: | Sept. 15, 2033
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| Bookrunners: | Citibank Global Markets, Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc. and Stephens Inc.
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| Co-manager: | Mischler Financial Group, Inc.
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| Counsel to issuer: | Morgan, Lewis & Bockius LLP (New York law), Eldredge & Clark, LLP (Arkansas law) and Jennings, Strouss & Salmon, PLLC (Texas law)
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| Counsel to underwriters: | Pillsbury Winthrop Shaw Pittman LLP
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| Coupon: | 5.3%
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| Price: | 99.439
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| Yield: | 5.372%
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| Spread: | Treasuries plus 120 bps
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| Call features: | Make-whole call before June 15, 2033 at Treasuries plus 20 bps; thereafter at par
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| Trade date: | Aug. 14
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| Settlement date: | Aug. 17
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| Ratings: | Moody’s: A2
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 29366MAE8
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