Duke Energy Carolinas to price bonds due 2031, 2051; talk emerges

By Devika Patel and Cristal Cody

Knoxville, Tenn., March 29 – Duke Energy Carolinas LLC plans to price first and refunding mortgage bonds in two tranches due April 15, 2031 and April 15, 2051, according to a 424B5 filing with the Securities and Exchange Commission.

Initial price talk is in the Treasuries plus 105 basis points area for the 2031 notes and in the Treasuries plus 125 bps area for the 2051 notes, according to a market source.

The bonds feature a make-whole call until Jan. 15, 2031 for the 2031 notes and until Oct. 15, 2050 for the 2051 notes, and then a par call.

The bookrunners are BNP Paribas Securities Corp., BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Truist Securities Inc.

Proceeds will be used to repay at maturity $500 million of 3.9% first and refunding mortgage bonds due June 15, 2021, to pay down intercompany short-term debt and for general company purposes.

The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.

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