By Wendy Van Sickle
Columbus, Ohio, Dec. 5 – Duke Energy Corp. priced $1 billion of notes in two parts (Baa2/BBB) on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $500 million of 5% senior notes due 2025 at 99.967 to yield 5.012%, or at a spread of 88 basis points over Treasuries.
The company also sold $500 million of 5% senior notes due 2027 at 99.891 to yield 5.025%, or at 123 bps over the benchmark Treasury.
BofA Securities, Inc., Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Truist Securities, Inc. are the bookrunners.
Funds will be used to repay a portion of the company’s outstanding commercial paper and for general corporate purposes. On Nov. 25, Duke Energy had approximately $3.4 billion of commercial paper outstanding with a weighted average interest rate of approximately 4.26% per year.
Charlotte, N.C.-based Duke Energy Corp. is a diversified energy company with both regulated and unregulated utility operations.
| Issuer: | Duke Energy Corp.
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | BofA Securities, Inc., Credit Suisse Securities (USA) LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC and Truist Securities, Inc.
|
| Co-managers: | Cabrera Capital Markets LLC, C.L. King & Associates, Inc. and Great Pacific Securities
|
| Trustee: | Bank of New York Mellon
|
| Counsel to issuer: | In-house counsel and Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 8
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
|
|
|
| 2025 notes
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| Amount: | $500 million
|
| Maturity: | Dec, 8, 2025
|
| Coupon: | 5%
|
| Price: | 99.967
|
| Yield: | 5.012%
|
| Spread: | Treasuries plus 88 bps
|
| Call features: | Make-whole call at any time at Treasuries plus 15 bps
|
| Cusip: | 26441CBV6
|
|
|
| 2027 notes
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| Amount: | $500 million
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| Maturity: | Dec. 8, 2027
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| Coupon: | 5%
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| Price: | 99.891
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| Yield: | 5.025%
|
| Spread: | Treasuries plus 123 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Nov. 8, 2027; thereafter at par
|
| Cusip: | 26441CBW4
|
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