Entergy Gulf States Louisiana (EGSL) is in the market with a $244.1 million transaction backed by system restoration bond collateral.
Underwriters on the offering are Citigroup Global Markets, JPMorgan Securities, Jefferies & Co., Doley Securities, Loop Capital Markets, Morgan Keegan & Co. and Stephens.
Standard & Poor’s, which rated the transaction, said that the preliminary ratings it assigned to the system restoration bonds were based a number of factors, including borrower Louisiana Utilities Restoration Corp.’s irrevocable statutory right to impose a non-bypassable consumption-based system restoration charge or SRC on EGSL's customers. The ratings were also based on Louisiana Utilities’ right to grant the security interest in the system restoration bond collateral to the issuer.
Similarly, Entergy Louisiana LLC (ELL) is also in the market with a $468.9 million transaction backed by system restoration bond collateral. The deal has the same set of underwriters as EGSL's offering.
S&P cited similar factors for the ELL bonds' ratings, including its view that the tranches' within the transaction could withstand the rating agency's cash flow stress scenarios and the deal debt service reserve account.
ELL's offering also benefits from the added credit strength resulting from the length of time between each tranche's legal and expected final maturity dates.
Preliminary details on the transactions are available via the link below from the ASR Scorecards database.