By Cristal Cody
Tupelo, Miss., June 8 – Duke Energy Florida, LLC priced $500 million of 1.75% 10-year first mortgage bonds (A1/A) on Monday at a spread of Treasuries plus 90 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 115 bps area.
The notes priced at 99.863 to yield 1.765%.
Barclays, BNP Paribas Securities Corp. and MUFG were the bookrunners.
Proceeds will be used to pay down a portion of the company’s intercompany short-term debt under its money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes, including funding capital expenditures and for ongoing construction and capital maintenance.
The public utility is based in St. Petersburg, Fla., and is a subsidiary of Duke Energy Corp.
| Issuer: | Duke Energy Florida, LLC
|
| Amount: | $500 million
|
| Maturity: | June 15, 2030
|
| Description: | First mortgage bonds
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp. and MUFG
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Regions Securities LLC and Santander Investment Securities Inc.
|
| Junior co-managers: | C.L. King & Associates, Inc. and Drexel Hamilton, LLC
|
| Coupon: | 1.75%
|
| Price: | 99.863
|
| Yield: | 1.765%
|
| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call before March 15, 2030 at Treasuries plus 15 bps; thereafter at par
|
| Trade date: | June 8
|
| Settlement date: | June 11
|
| Ratings: | Moody’s: A1
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 115 bps area
|
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