Joint Bookrunner
Entergy Arkansas, LLC
Debt Capital Markets
Dual Offering Of Senior Secured First Mortgage Bonds Due 2034 and 2054
Transaction Details
- On May 10, 2024, Entergy Arkansas, LLC (“EAL”) closed on the sale of $400,000,000 aggregate principal amount of its First Mortgage Bonds, 5.45% Series due June 1, 2034 and $400,000,000 aggregate principal amount of its First Mortgage Bonds, 5.75% Series due June 1, 2054
- The 2034 bonds were issued at 99.926% of the principal amount for a re-offer yield of 5.459%
- The 2054 bonds were issued at 99.555% of the principal amount for a re-offer yield of 5.781%
- EAL intends to use the net proceeds from the issuance and sale of the bonds, together with other available funds for the following:
- To repay at maturity the outstanding $375 million aggregate principal amount of EAL’s First Mortgage Bonds, 3.70% Series due June 1, 2024
- To pay a portion of the purchase price of each of Driver Solar, Walnut Bend Solar and/or West Memphis Solar, in each case, as described in the 2023 Form 10-K and, with respect to Walnut Bend Solar, as further described in the First Quarter 2024 Form 10-Q
- To repay EAL's borrowings under the Entergy system money pool (at May 3, 2024, EAL had approximately $2.3 million of outstanding money pool obligations bearing interest at the weighted average rate of approximately 5.21% per year), and/or
- For general corporate purposes
- Issue ratings were A (S&P Global Ratings) / A2 (Moody’s Investors Service)
About the company
Entergy Arkansas, LLC serves approximately 730,000 customers in 63 counties. Entergy Arkansas is a subsidiary of Entergy Corporation (“Entergy”), a Fortune 500 company that powers life for 3 million customers through their operating companies in Arkansas, Louisiana, Mississippi and Texas. Entergy is investing in the reliability and resilience of the energy system while helping their region transition to cleaner, more efficient energy solutions. With roots in their communities for more than 100 years, Entergy is a nationally recognized leader in sustainability and corporate citizenship. Since 2018, Entergy has delivered more than $100 million in economic benefits each year to local communities through philanthropy, volunteerism and advocacy. Entergy is headquartered in New Orleans, Louisiana, and has approximately 12,000 employees.
Sources: Company Filings.
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The offering of these securities is being made only by means of a prospectus, copies of which may be obtained from Stephens Inc.’s Fixed Income Syndicate Desk, at Stephens Inc., 111 Center Street, Little Rock, AR 72201, ATTN: Fixed Income Syndicate Desk, or from the Securities and Exchange Commission’s website at www.sec.gov at the following link:
https://www.sec.gov/Archives/edgar/data/7323/000119312524134361/d824967d424b2.htm. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to the notice of its acceptance given after the effective date.“Stephens” (the company brand name) is a leading family-owned investment firm that includes Stephens Inc. (member NYSE/SIPC), Stephens Investment Management Group, LLC, Stephens Insurance, LLC, Stephens Capital Partners LLC and Stephens Europe Limited (Registered office: 12 Arthur Street, London, EC4R 9AB, Registered number 8817024), which is authorised and regulated by the Financial Conduct Authority. © 2024 Stephens