Category: Baby Bond Calls

Leasing/rental corporation General Fiannce (GFN) has announced that they will redeem the last $11.6 million of the 8.125% baby bonds (GFNSL) on 1/15/21.

The announcement is here.

The company had previously made 2 partial calls of the bonds.

GFN has a newer baby bond outstanding with a coupon of 7.875% as well as a $100 perpetual preferred with a coupon of 9% which you can see here.

Entergy Louisiana, a subsidiary of utility giant Entergy (ETR) has announced a new $1000 bond issue.

The company will be calling 2 $25 baby bond issues now outstanding. The 4.70% issue (ELU) which became callable in 2018 and the 5.25% issue (ELJ) which became callable in 2017.

ELU closed Friday at $25.49 and ELJ closed on Friday at $26.07.

Further details are not known yet.

UPDATE–They garnered a 1.75% coupon on the new issue–maturity in 2031.

Pricing term sheet can be found here.

Entergy Texas will be calling some or all of their 5.625% 1st Mortgage baby bonds due 2064 (EZT). These 1st became callable 6/1/2019.

The company will be selling some 1st mortgage $1,000 bonds with proceeds to be used in the redemption.

EZT had traded as high as $27/share a month ago–but had drifted lower in the last month to now trade at $25.40

The prospectus with the ‘use of proceeds’ statement can be found here.

With the various recent calls everyone should be on notice that these utilities will be calling issues when possible with proceeds from low coupon bonds (2-3%)–and who can blame them.