Published on 11/9/2017 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy Carolinas sells $550 million 3.7% 30-year bonds at 90 bps over Treasuries
By Cristal Cody
Tupelo, Miss., Nov. 9 – Duke Energy Carolinas LLC priced $550 million of 3.7% 30-year first mortgage bonds (Aa2/A) on Thursday at a spread of Treasuries plus 90 basis points, according to an FWP filed with the Securities and Exchange Commission.
The bonds priced at 99.854 to yield 3.708%.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to refinance $400 million of the company’s 5.25% first and refunding mortgage bonds due Jan. 15, 2018, to pay down intercompany short-term debt under the company’s money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes.
The Charlotte, N.C.-based subsidiary of Duke Energy Corp. generates, transmits, distributes and sells electricity.
| Issuer: | Duke Energy Carolinas LLC
|
| Amount: | $550 million
|
| Description: | First mortgage bonds
|
| Maturity: | Dec. 1, 2047
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Scotia Capital (USA) Inc., TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | BB&T Capital Markets, KeyBanc Capital Markets Inc. and PNC Capital Markets LLC
|
| Junior co-managers: | Academy Securities, Inc., Drexel Hamilton, LLC and Mischler Financial Group, Inc.
|
| Coupon: | 3.7%
|
| Price: | 99.854
|
| Yield: | 3.708%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call at greater of par and Treasuries plus 15 bps before June 1, 2047; thereafter at par
|
| Trade date: | Nov. 9
|
| Settlement date: | Nov. 14
|
| Ratings: | Moody’s: Aa2
|
| S&P: A
|
| Distribution: | SEC registered
|
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