Entergy New Orleans has successfully raised $90 million through the sale of long-term first mortgage bonds to institutional investors, according to a May 27 filing with the U.S. Securities and Exchange Commission. The transaction comes just days after the utility conducted its annual Metro Storm Drill, underscoring the company's focus on storm readiness as the Atlantic hurricane season officially begins June 1.
The bond issuance consists of two tranches: $35 million in 5.91% first mortgage bonds maturing June 1, 2036, and $55 million of 6.65% first mortgage bonds maturing June 1, 2056. Interest on both series is payable semiannually on June 1 and December 1, with the first payment scheduled for December 1, 2026. The bonds are secured debt, meaning bondholders have a claim on the utility's physical assets in the event of default.
The private placement was offered exclusively to institutional buyers under Section 4(a)(2) of the Securities Act, avoiding public registration. Entergy New Orleans retains the right to redeem the bonds early, though most redemptions would require payment of a make-whole premium to compensate investors for lost interest. However, after March 1, 2036 (for the 2036 bonds) and December 1, 2055 (for the 2056 bonds), the company can call the bonds at par plus accrued interest.
Utilities across the Gulf South are actively bolstering their financial and operational resilience ahead of storm season. Entergy's move follows a similar drill by CenterPoint Energy in Houston, which simulated a Category 3 hurricane, and ongoing year-round storm training by Mississippi Power, whose infrastructure is designed to withstand winds up to 150 mph. The region's utilities are seeking to raise cash for normal capital expenditures, storm-proofing their grids, and meeting economic development commitments in areas prone to severe weather.
The National Oceanic and Atmospheric Administration's latest forecast predicts a 55% chance of below-normal Atlantic hurricane activity in 2026, with 8 to 14 named storms, 3 to 6 hurricanes, and 1 to 3 major hurricanes expected. However, NOAA emphasizes that even a quiet season can produce destructive landfalls, and the most active period typically runs from August through October.
Separately, Entergy Mississippi announced the recipients of its 2026 Excellerator Competitive Communities grants, with $82,500 distributed among nine organizations, including the Vicksburg Warren County Chamber of Commerce. The grants, part of a program now in its tenth year, support strategic planning, site readiness, and marketing materials to attract business investment. Ed Gardner, vice president of business and economic development at Entergy Mississippi, noted that the grants help communities position themselves as business-friendly options.
Entergy New Orleans' SEC filing did not specify how the $90 million will be used, leaving investors to await future disclosures to determine whether the funds will go toward refinancing, capital projects, or other purposes. The bond sale adds to the company's secured debt load at a time when storm preparation is top of mind for both the utility and its regulators.
Entergy Corp., the parent company headquartered in New Orleans, serves over 3 million customers across Arkansas, Louisiana, Mississippi, and Texas, with approximately 12,000 employees. Entergy Mississippi alone provides electricity to about 459,000 customers in 45 counties. The successful bond placement underscores investor confidence in the utility's creditworthiness, even as it navigates the inherent risks of operating in a hurricane-prone region.
