Midday Commentary: Entergy Louisiana bringing rumored utility deal; Qwest notes list on NYSE

By Stephanie N. Rotondo

Phoenix, June 26 - Rumors of a new preferred deal from a utility proved to be true Tuesday. Entergy Louisiana LLC announced plans for an offering of $25-par first mortgage bonds.

Price talk on the 40-year notes was revised to around 5.25%, according to a trader. At midday, he said the securities were expected to price at the end of business Tuesday.

"It's going to do very well," he said, seeing paper at $24.97 in the gray market.

He added that there was no selling group.

Meanwhile, as expected, Qwest Corp.'s $400 million issue of 7% notes due 2052 listed on the New York Stock Exchange under the ticker symbol "CTU."

The notes were trading in a $25.30 to $25.35 range at midday.

In the secondary, Bank of America Corp. paper was dominating trading as investors continued to react to news out Friday regarding the redemption of $3.9 billion of trust preferred securities.

The 6.25% capital securities (NYSE: BACPB) were up 2 cents in midday trading at $25.07. Countrywide Financial's 7% capital securities (NYSE: CFCPB) were inching higher, trading at $24.70.

Bank of America is the latest bank to jump on the redemption bandwagon following the release of the Federal Reserve's new proposed rules on capital treatment for financial institutions earlier this month.

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