Entergy Louisiana brings upsized deal at low end of talk; Qwest 7% notes get symbol on NYSE

By Stephanie N. Rotondo

Phoenix, June 26 - Rumors of a new preferred deal from a utility proved to be true Tuesday, as Entergy Louisiana LLC announced 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.

The deal did in fact price after the close. It came as an upsized $200 million issue at 5.25%.

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."

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

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.

Entergy prices new deal

Entergy Louisiana priced a $200 million offering of 5.25% $25-par first mortgage bonds due July 1, 2052 on Tuesday. The deal was upsized from $100 million.

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

He added that there was no selling group.

After the bell, and shortly ahead of pricing, another market source saw a $24.97 bid, but no offers for paper.

"The offered side is probably just above par," he said.

The company will apply to list the bonds on the NYSE. July 3 is expected to be the settlement date.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunning managers. J.P. Morgan Securities LLC and Raymond James & Associates Inc. are the co-managers.

Proceeds will be used for general corporate purposes.

Entergy Louisiana is the Baton Rouge, La.-based energy-providing subsidiary of Entergy Corp.

Qwest lists on NYSE

Qwest's $400 million issue of $25-par 7% senior notes due July 1, 2052 finally listed on the NYSE on Tuesday.

The ticker symbol is "CTU." The deal priced June 14.

The notes closed the day at $25.36.

The Monroe, La.-based telecommunications provider is using proceeds from the sale of the notes to redeem $484 million of its 7.5% notes due 2023.

That issue (NYSE: CTW) increased 7 cents to $26.47.

Bank of America rises

Late Friday, Charlotte, N.C.-based Bank of America joined a growing group of financial institutions looking to call certain securities that will no longer be deemed tier 1 capital under new rules proposed by the Fed.

Investors have been actively "recycling" paper, as one market source put it, which has provided some activity for the market.

Bank of America's 6.25% capital securities (NYSE: BACPB) were among the day's most actively traded issues, rising 2 cents to $25.07.

The $3.9 billion spread over 11 series of trust preferreds will be redeemed July 25.

Among other recently called issues, Citigroup Inc.'s 8.5% fixed-to-floating-rate trust preferreds (NYSE: CPJ) have continued to be active and steady at $25.59.

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