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Duke Energy Carolinas offers mortgage bonds due 2033, 2053
By Mary-Katherine Stinson
Lexington, Ky., Jan. 3 – Duke Energy Carolinas LLC plans to price first and refunding mortgage bonds in two tranches due Jan. 15, 2033 and Jan. 15, 2053, according to a 424B5 filing with the Securities and Exchange Commission.
The 2033 bonds will feature a make-whole call until Oct. 15, 2032 and until July 15, 2052 for the 2053 bonds, and then par calls.
Sales of the 2033 mortgage bonds and the 2053 mortgage bonds are to take place concurrently. but are not conditioned upon each other. The sale of one series may be completed without the other, or the sales may be consummated at different times.
The bookrunners are Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Wells Fargo Securities, LLC.
Barclays, BMO Capital Markets Corp., PNC Capital Markets LLC and Santander Investment Securities Inc. are also listed as bookrunners.
Proceeds will be used to repay at maturity $500 million of the company’s 2.5% bonds and $500 million of its 3.05% bonds, to pay down a portion of outstanding intercompany short-term debt under the company’s money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes. At Dec. 16, the company had approximately $820 million of outstanding short-term money-pool borrowings at an annual interest rate of 4.52%.
Bank of New York Mellon Trust Co., NA is the trustee.
The issuer will use in-house legal counsel and also Hunton Andrews Kurth LLP. Counsel for the underwriters will be provided by Sidley Austin LLP.
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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