Duke Energy eyes two-part fixed-, floating-rate first mortgage bonds

By Devika Patel

Knoxville, Tenn., Sept. 5 – Duke Energy Progress, LLC will price an offering of first mortgage bonds in two tranches, according to a 424B5 filed with the Securities and Exchange Commission.

The company is selling one fixed-rate tranche due 2047 and a floating-rate tranche due 2020.

The fixed-rate notes feature a make-whole call until March 15, 2047 and then a par call. The floaters may not be called.

Goldman Sachs & Co., Mizuho Securities USA Inc., RBC Capital Markets Corp., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the bookrunners.

Proceeds will be used to repay at maturity $200 million of second floating rate series first mortgage bonds due Nov. 20, 2017, to pay down intercompany short-term debt under Duke Energy Progress’ money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes.

Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.

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