Published on 5/9/2016 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy Indiana prints $500 million 3.75% 30-year mortgage bonds at 115 bps spread
By Cristal Cody
Eureka Springs, Ark., May 9 – Duke Energy Indiana, LLC sold $500 million of 3.75% 30-year first mortgage bonds with a spread of 115 basis points over Treasuries on Monday, according to an FWP filing with the Securities and Exchange Commission.
The series XXX bonds (Aa3/A/A) priced at 99.731 to yield 3.765%.
The notes feature a make-whole call before Nov. 15, 2045 at Treasuries plus 20 bps and are callable at par on or after Nov. 15, 2045.
Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Mizuho Securities USA Inc. and U.S. Bancorp Investments, Inc. were the lead managers.
Proceeds will be used for general corporate purposes, including to repay $325 million of 6.05% debentures due June 15, 2016 and $150 million of series VVV floating-rate first mortgage bonds due July 11, 2016.
The electric subsidiary of Duke Energy Corp. is based in Plainfield, Ind.
| Issuer: | Duke Energy Indiana, LLC
|
| Amount: | $500 million
|
| Maturity: | May 15, 2046
|
| Securities: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Mizuho Securities USA Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | BBVA Securities Inc., DNB Markets, Inc., PNC Capital Markets LLC, Williams Capital Group, LP
|
| Junior co-managers: | CastleOak Securities, LP, Great Pacific Securities
|
| Coupon: | 3.75%
|
| Price: | 99.731
|
| Yield: | 3.765%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call before Nov. 15, 2045 at Treasuries plus 20 bps; on or after Nov. 15, 2045 at par
|
| Pricing date: | May 9
|
| Settlement date: | May 12
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
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