Duke Energy Florida readies sale of first mortgage bonds due 2052; expected in 200 bps area

By Cristal Cody

Chicago, Nov. 7 – Duke Energy Florida, LLC is offering $500 million of fixed-rate first mortgage bonds due Nov. 15, 2052, according to a 424B5 filing with the Securities and Exchange Commission and more information from a market source.

The source saw the notes coming in the 200 basis points area.

The notes will be callable with a make-whole premium until six months before the maturity date when they will be callable at par.

Barclays, Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are leading the sale.

They are joined by other joint bookrunners BNP Paribas Securities Corp., Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc. 

The mortgage trustee is Bank of New York Mellon.

Duke Energy is using in-house counsel and Hunton Andrews Kurth LLP for advice on legal matters. Sidley Austin LLP is advising the bookrunners.

Proceeds will be used to pay down a portion of intercompany short-term debt under the money-pool borrowing arrangements with the issuer’s parent company, and for general corporate purposes.

Duke Energy Florida, based in St. Petersburg, Fla., is a regulated public utility and an indirect wholly owned subsidiary of Duke Energy Corp.

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