By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, June 7 – Duke Energy Corp. priced $3 billion of senior notes (Baa1/BBB+) in four tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
Duke Energy sold $500 million of floating-rate two-year notes at par with a coupon based on SOFR plus 25 basis points.
The notes were talked to print in the SOFR plus 55 bps area.
A $1 billion tranche of 2.55% notes due June 15, 2031 priced at 99.868 to yield 2.565%, or Treasuries plus 100 bps.
The notes were initially talked at the Treasuries plus 125 bps area.
A $750 million tranche of 3.3% notes due June 15, 2041 priced at 99.752 to yield 3.317%, or Treasuries plus 115 bps.
The notes were initially talked at the Treasuries plus 140 bps area.
A $750 million tranche of 3.5% 30-year notes priced at 99.963 to yield 3.502%, or Treasuries plus 125 bps.
The notes were initially talked at the Treasuries plus 150 bps area.
The fixed-rate notes will have a make-whole call followed by a par call. The floaters are non-callable.
Barclays, BofA Securities Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC are the bookrunners.
Proceeds will be used to redeem on June 15, 2021 $500 million of the company’s 3.55% senior notes due Sept. 15, 2021, to repay at maturity $750 million of its 1.8% senior notes due Sept. 1, 2021, to repay a portion of its commercial paper and for general corporate purposes.
The energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, BofA Securities Inc., PNC Capital Markets LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc., Siebert Williams Shank & Co., LLC, Academy Securities, Inc., C.L. King & Associates, Inc., Great Pacific Securities, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and WR Securities, LLC
|
| Trade date: | June 7
|
| Settlement date: | June 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | SEC registered
|
|
|
| Two-year floaters
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| Amount: | $500 million
|
| Maturity: | June 10, 2023
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| Coupon: | SOFR plus 25 bps
|
| Talk: | SOFR plus 55 bps area
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Maturity: | June 15, 2031
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| Coupon: | 2.55%
|
| Price: | 99.868
|
| Yield: | 2.565%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call before March 15, 2031 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
|
| Price guidance: | Treasuries plus 125 bps area
|
|
|
| 20-year notes
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| Amount: | $750 million
|
| Maturity: | June 15, 2041
|
| Coupon: | 3.3%
|
| Price: | 99.752
|
| Yield: | 3.317%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call before Dec. 15, 2040 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 140 bps area
|
|
|
| 30-year notes
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| Amount: | $750 million
|
| Maturity: | June 15, 2051
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| Coupon: | 3.5%
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| Price: | 99.963
|
| Yield: | 3.502%
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | Make-whole call before Dec. 15, 2050 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Price guidance: | Treasuries plus 150 bps area
|
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