By Wendy Van Sickle
Columbus, Ohio, Jan. 2 – Duke Energy Corp. priced $1.1 billion of senior notes due 2027 and 2029 (Baa2/BBB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The utility sold $550 million of 4.85% three-year notes at 99.989 to yield 4.854%. The notes priced with a 75 basis points spread to the benchmark Treasury.
Duke Energy also sold $550 million of 4.85% five-year notes at 99.881 to yield 4.877%. Pricing on the notes was at Treasuries plus 95 bps.
For the 2027 notes, the notes are callable with a Treasuries plus 15 bps premium at any time. For the 2029 notes, the premium is Treasuries plus 25 bps until Dec. 5, 2028, after which the notes are callable at par.
Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers for the offering.
Proceeds will be used to repay the company’s $1 billion term loan due March 9, 2024, to repay a portion of outstanding commercial paper and for general corporate purposes. As of Dec. 19, Duke had $3.6 billion of commercial paper outstanding.
Duke Energy is a diversified energy company based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $1.1 billion
|
| Issue: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | KeyBanc Capital Markets Inc., Regions Securities LLC, Siebert Williams Shank & Co., LLC, Cabrera Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house, Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | Jan. 2
|
| Settlement date: | Jan. 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 2027 notes
|
| Amount: | $550 million
|
| Maturity: | Jan. 5, 2027
|
| Coupon: | 4.85%
|
| Price: | 99.989
|
| Yield: | 4.854%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps at any time
|
| Cusip: | 26441CCB9
|
|
|
| 2029 notes
|
| Amount: | $550 million
|
| Maturity: | Jan. 5, 2029
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| Coupon: | 4.85%
|
| Price: | 99.881
|
| Yield: | 4.877%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Dec. 5, 2028; thereafter at par
|
| Cusip: | 26441CCC7
|
|
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