Entergy’s $20 billion spin-off plan elicits yawns on Wall Street
Entergy Corp.’s announced plan to spin off about 5,000 MW of nuclear assets generated a major buzz when it was announced in early November.
Early analysis suggested the transaction might have a positive effect on Entergy’s credit rating—given the relatively high market-risk exposure of the Nuclear Spinco assets, compared to Entergy’s corporate profile. And of course Entergy hopes a pure-play nuclear generator will fetch a big premium in the carbon-spooked equities market.
But the Nuclear Spinco buzz weakened as credit worries on Wall Street dampened enthusiasm about large or unusual transactions, and doubts emerged about relicensing at Entergy’s Indian Point plant in New York.
The buzz might strengthen again, however, as the credit and regulatory picture gets clearer, and Entergy moves forward with its nuclear spinoff.