Duke Energy offers $500 million fixed-to-fixed reset rate junior subordinated debentures due 2082

By Cristal Cody

Chicago, Sept. 23 – Duke Energy Corp. plans to sell $500 million of fixed-to-fixed reset rate junior subordinated debentures due Jan. 15, 2082, according to a market source and a 424B5 filing on Thursday morning.

The notes are talked with an initial coupon in the 3.75% area.

The initial fixed rate will apply from the issue date to Jan. 15, 2027. The rate will reset to the five-year Treasury rate plus a spread. Interest reset dates are on five-year anniversaries going forward.

Interest can be deferred at the option of the issuer.

Barclays, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and MUFG are joint bookrunners. Guggenheim Securities, LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. are also listed as bookrunners.

Bank of New York Mellon Trust Co. is the trustee.

The company is relying on in-house counsel and, for federal income tax considerations, Hunton Andrews Kurth LLP.

Sidley Austin LLP is advising the bookrunners.

Proceeds will be used to redeem the 5.125% junior subordinated debentures due 2073. The redemption was announced previously for Oct. 7. Pending the use of the proceeds for the redemption, the company will repay a portion of its commercial paper.

The energy holding company is based in Charlotte, N.C.

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