12 thoughts on “Entergy Arkansas Comes Calling”

  1. I assume the post is about the 2.65% 2051 Bond that appeared and disappeared within minutes of being offered to Retail investors. $1million (1000 shares) showed up just after 8:30AM…..along with a bid just under par for all 1000 shares. Five minute later they were all gone.
    Ten minutes or so after that, another 1000 shares were out there for sale. I managed to buy 2 bonds before this 1000 shares were bought up.
    Like everything else that has any yield….the competition is fierce

  2. As I write, Sep 10th, the bid/ask on EAB is $25.69/$25.71 at 10am. Why would anyone pay this since it’s getting called? Can I sell short?

    1. Derek, Never underestimate the ability of a utility’s lack of speed to “get around to it”. About 2 years ago or so Entergy issued a bond which included redeeming the Entergy Arkansas preferreds. They didnt get around to redeeming the preferreds for around 6 months after the debt offering was completed.

      1. With a quarterly dividend of $0.3068 (and having just paid last on Sep 1), even if it takes them 6 months, it seems to me that you’d still be in the hole if you pay $25.69 today. Unless of course you find a bigger sucker between now and then. 🙂

        1. I wasnt certainly implying buying it or hanging on either way. Im not that crazy, ha. I was just remembering a couple years ago, Tim posted an article here that Entergy was issuing a bond and the SEC filings showed it to be redeeming the old Entergy Ark preferreds. So I quickly looked and many were $5-$7 under redemption price so I bought every one I could raise cash on to buy. A few days later the shares finally were selling at redemption price so I sold. But the darn things still kicked out a couple dividends before they mustered the energy to actually redeem them. Utes dont always move fast.

  3. Reality bites. 2.65% = 0% after taxes and today’s moderate inflation, but given the outlook for both taxes and inflation, need to look elsewhere. Sad.

  4. Why would they not call ELJ – Entergy Louisiana LLC, 5.25% which has a 7/1/2017 call date?

  5. Hi Tim
    This is just one of the many reasons I come here daily. I used the ETR news today to sell two ETR Arkansas mortgage bonds I owned at a small profit, rather than having them called at face value. Now, I await the news advising the rate that the new $1,000 bond will pay. ( I am not expecting it to be very high, but one can hope. ) In any event, thanks for the info. Howard

    1. Fully expect EAI to also be called in a year and sold out after the last declaration. It was a big position and not many A rated replacements are available.

      1. Tim
        Just want to add my thanks to your efforts. There seems to be so much going on that opening your site early each day manages to make me feel that at least this piece of it has some stability. Much appreciate all that you and the frequent commenters do. SC

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