Entergy Louisiana LLC sold $750 million of its 4% collateral trust mortgage bonds due March 15, 2033, according to a March 20 free writing prospectus.
Interest on the bonds is payable semiannually on March 15 and Sept. 15 of each year, starting Sept. 15. The bonds have a spread to benchmark Treasury of 112.5 basis points. The issue was expected to be rated A2 by Moody's and A by S&P Global Ratings.
The Entergy Corp. subsidiary intends to use net proceeds to finance construction of the Lake Charles and St. Charles combined-cycle, gas-fired power facilities, repay about $375 million of its 6% first mortgage bonds due May 1, repay borrowings from the Entergy system money pool, repay about $100 million under its $350 million credit facility and for general corporate purposes.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and Wells Fargo Securities LLC acted as joint book-running managers. KeyBanc Capital Markets Inc., Regions Securities LLC and Mischler Financial Group Inc. served as co-managers.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.