Duke Energy $700 million convertibles talked at 1.75-2.25% yield, up 36-40%

By Sara Rosenberg

New York, May 1 - Duke Energy Corp.'s $700 million convertible senior notes due 2023, scheduled to price after market hours Thursday, is talked to yield 1.75% to 2.25% with indications that the coupon will come at the low end of the range and at a 40% to 42% initial conversion premium.

Initial talk had the deal pricing to yield 1.75% to 2.25%, with an initial conversion premium of 36% to 40%.

Citigroup Global Markets Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and Wachovia Securities, Inc. are the bookrunners for the offering, which is being made under the company's existing shelf registration statement.

There is a $70 million greenshoe.

The convertibles are callable after four years and there are puts after four, nine and fourteen years.

There is a contingent conversion threshold of 120% and a contingent payment trigger at 120%.

Expected ratings for the convertible offering are A3 from Moody's Investors Service and A- from Standard & Poor's.

The Charlotte, N.C. energy company will use proceeds for general corporate purposes, which may include the reduction of outstanding commercial paper.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.