Morning Commentary: Entergy Louisiana $25-par deal on tap; Entergy Arkansas’ new issue nears par

By Stephanie N. Rotondo

Seattle, Aug. 10 – The preferred stock primary market got another Entergy-linked deal on Wednesday as Entergy Louisiana LLC announced plans to sell $150 million of $25-par collateral trust mortgage bonds due 2066.

That issue comes on the heels of Entergy Arkansas Inc.’s $410 million sale of 4.875% $25-par first mortgage bonds due 2066 on Tuesday.

“It looks like they are going to do more small deals out of each one of these,” a trader said, referring to each of Entergy Corp.’s subsidiaries.

Price talk on the new issue is in line with the Entergy Arkansas paper, the trader added.

BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books – the same underwriters as the Arkansas deal.

Also like the Arkansas deal, Entergy Louisiana plans to use proceeds to redeem outstanding issues. Those issues – the 5.875% $25-par series first mortgage bonds due 2041 and 6% $25-par series first mortgage bonds due 2040 – were weaker in response.

The 5.875% notes (NYSE: ELA) were off 36 cents, or 1.38%, at $25.42 in early trading. The 6% notes (NYSE: ELB) were also at $25.42, which was down 33 cents, or 1.28%.

As for Entergy Arkansas, it was pegged at $24.95 bid, par offered at mid-morning.

Elsewhere in the new issue market, Gladstone Land Corp. announced a sale of series A cumulative term preferred stock.

Price talk is 6.5%, according to a market source.

Janney Montgomery Scott LLC is leading the deal.

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