Entergy Louisiana sells $25-par first mortgage bonds; UBS brings new $1.5 billion deal

By Stephanie N. Rotondo

Phoenix, May 15 - The primary preferred market showed no signs of letting up on Wednesday, as more deals were announced.

Entergy Louisiana LLC said it was bringing $25-par first mortgage bonds due 2063. A trader said the offering was "a small deal, no selling group."

He pegged the issue at less a dime bid, less a nickel offered in the midday gray market.

The deal priced shortly after the close, with $100 million of the bonds being issued at par to yield 4.7%.

The trader also said that UBS AG had priced a $1.5 billion offering of 4.75% $100-par fixed-to-floating rate contingent convertible bonds due May 22, 2023.

The trader saw the issue at $99.90 bid.

After the redemption date of May 22, 2018, the coupon is reset to the prevailing five-year mid-market swap rate plus 376.5 basis points.

The notes are convertible into equity upon the earlier of the bank's common equity tier I ratio falling below 5% or upon the occurrence of a viability event.

Among recent deals, Qwest Corp.'s $750 million of 6.125% $25-par notes due 2053 were seen at $24.95, while Fifth Third Bancorp's $600 million of 5.1% series H perpetual fixed-to-floating rate noncumulative preferreds - a $1,000-par issue - were "about one-eighth over par," according to a trader.

Qwest came Tuesday and Fifth Third priced Monday.

BofA busy ahead of call

In the secondary space, Bank of America Corp.'s 8.625% series 8 noncumulative preferreds (NYSE: BMLPQ) were dominating trading, with over 2.16 million shares changing hands.

The issue fell a penny to $24.98.

On March 14, the Charlotte, N.C.-based bank announced a call for the securities. The redemption will take place May 28.

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