By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, March 29 – Duke Energy Carolinas LLC priced a $1 billion two-tranche offering of first and refunding mortgage bonds (Aa3/A) on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company priced $550 million of 2.55% 10-year bonds at 99.885 to yield 2.563%, or Treasuries plus 85 basis points.
Initial price talk was in the Treasuries plus 105 bps area.
Duke Energy priced $450 million of 3.45% 30-year bonds at 99.627 to yield 3.47%. The bonds priced with a spread of 105 bps over Treasuries.
Talk was in the Treasuries plus 125 bps area.
Bookrunners were 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.
| Issuer: | Duke Energy Carolinas LLC
|
| Amount: | $1 billion
|
| Description: | First and refunding mortgage bonds
|
| Bookrunners: | 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.
|
| Co-managers: | Santander Investment Securities Inc., Loop Capital Markets LLC, Regions Securities LLC, CastleOak Securities, LP, Drexel Hamilton, LLC and Samual A. Ramirez & Co., Inc.
|
| Trade date: | March 29
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year bonds
|
| Amount: | $550 million
|
| Maturity: | April 15, 2031
|
| Coupon: | 2.55%
|
| Price: | 99.885
|
| Yield: | 2.563%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call before Jan 15, 2031 at Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| 30-year bonds
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| Amount: | $450 million
|
| Maturity: | April 15, 2051
|
| Coupon: | 3.45%
|
| Price: | 99.627
|
| Yield: | 3.47%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before Oct. 15, 2050 at Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 125 bps area
|
|
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