By Cristal Cody
Tupelo, Miss., Sept. 9 – Duke Energy Corp. priced $1 billion of senior notes (Baa1/BBB+) in two tranches on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
Duke Energy sold $650 million of new 0.9% five-year notes at 99.951 to yield 0.91%, or a spread of Treasuries plus 63 basis points.
The notes were initially talked at the Treasuries plus 90 bps area.
A $350 million add-on to the company’s 2.45% notes due June 1, 2030 priced at 106.058 to yield 1.753%, or Treasuries plus 105 bps.
The notes were talked to print in the 137.5 bps spread area.
Duke Energy first sold $500 million of the notes on May 13 at 99.681 to yield 2.486%, or Treasuries plus 185 bps. The total outstanding is now $850 million.
Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Truist Securities, Inc. were the bookrunners.
Proceeds will be used to repay a portion of the company’s commercial paper, to repay a portion of the outstanding $1.69 billion term loan due March 2021 and for general corporate purposes.
The energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Truist Securities, Inc.
|
| Co-managers: | Loop Capital Markets LLC, Siebert Williams Shank & Co., LLC, BMO Capital Markets Corp., CastleOak Securities, LP and Drexel Hamilton, LLC
|
| Trade date: | Sept. 9
|
| Settlement date: | Sept. 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $650 million
|
| Maturity: | Sept. 15, 2025
|
| Coupon: | 0.9%
|
| Price: | 99.951
|
| Yield: | 0.91%
|
| Spread: | Treasuries plus 63 bps
|
| Call features: | Make-whole call before Aug. 15, 2025 at price equal to greater of par and Treasuries plus 10 bps; thereafter at par
|
| Price guidance: | Treasuries plus 90 bps area
|
|
|
| 10-year notes
|
| Amount: | $350 million reopening
|
| Maturity: | June 1, 2030
|
| Coupon: | 2.45%
|
| Price: | 106.058
|
| Yield: | 1.753%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call before March 1, 2030 at price equal to greater of par and Treasuries plus 30 bps; thereafter at par
|
| Price guidance: | Treasuries plus 137.5 bps area
|
| Total outstanding: | $850 million, including $500 million of notes priced May 13 at 99.681 to yield 2.486%, or Treasuries plus 185 bps
|
|
|
© 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.
