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Utility Entergy Texas Comes a Calling–UPDATED PRICING

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.

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