Published on 9/5/2023 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy sells $1.35 billion of senior notes due 2033, 2053
By Wendy Van Sickle
Columbus, Ohio, Sept. 5 – Duke Energy Corp. priced $1.35 billion of notes in two parts (Baa2/BBB) on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $600 million of 5.75% senior notes due 2033 at 99.923 to yield 5.76%, or at a spread of 150 basis points over Treasuries.
The company also sold $750 million of 6.1% senior notes due 2053 at 99.957 to yield 6.103%, or at 173 bps over the benchmark Treasury.
BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC and Truist Securities, Inc. are the joint bookrunning managers for the offering. BNP Paribas Securities Corp., MUFG Securities Americas Inc., Santander US Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc. are also listed as bookrunners.
Funds will be used to repay two series of notes at maturity and to repay a portion of the company’s outstanding commercial paper and for general corporate purposes. On Aug. 23, Duke Energy had approximately $2.6 billion of commercial paper outstanding with a weighted average interest rate of approximately 5.5% 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.
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| Amount: | $1.35 billion
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| Issue: | Senior notes
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| Bookrunners: | BMO Capital Markets Corp., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, Truist Securities, Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., Santander US Capital Markets LLC, Scotia Capital (USA) Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | KeyBanc Capital Markets Inc., Loop Capital Markets LLC, American Veterans Group, PBC, Mischler Financial Group, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | In-house counsel and Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Trade date: | Sept. 5
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| Settlement date: | Sept. 8
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Distribution: | SEC registered
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|
|
| 2033 notes
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| Amount: | $600 million
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| Maturity: | Sept. 15, 2033
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| Coupon: | 5.75%
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| Price: | 99.923
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| Yield: | 5.76%
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| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until June 15, 2033; thereafter at par
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| Cusip: | 26441CBZ7
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|
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| 2053 notes
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| Amount: | $750 million
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| Maturity: | Sept. 15, 2053
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| Coupon: | 6.1%
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| Price: | 99.957
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| Yield: | 6.103%
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| Spread: | Treasuries plus 173 bps
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| Call features: | Make-whole call at Treasuries plus 30 bps until March 15, 2053; thereafter at par
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| Cusip: | 26441CCA1
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