Duke Energy Carolinas offers mortgage bonds due 2034, 2054

Chicago, Jan. 3 – Duke Energy Carolinas, LLC is offering two series of first and refunding mortgage bonds, according to a 424B5 filing with the Securities and Exchange Commission.

The company is offering a series of fixed-rate bonds due Jan. 15, 2034 and bonds to be added to the 5.4% series due Jan. 15, 2054.

Upon settlement, the new bonds due 2054 will be combined with the $500 million of bonds issued on June 15, 2023.

Both bonds have make-whole call protection and then a par call option a number of months before their maturity dates. The 2034 bonds will have a three-month par call. For the 2054 bonds, the make-whole premium is Treasuries plus 25 basis points and the par call period starts July 15, 2053.

BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC and Truist Securities, Inc. are working as joint bookrunners.

Bank of New York Mellon Trust Co., NA will be the trustee.

The issuer will use in-house legal counsel and Hunton Andrews Kurth LLP. Counsel for the underwriters will be provided by Sidley Austin LLP.

Proceeds will be used to pay down a portion of the issuer’s intercompany short-term debt under a money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes. As of Nov. 30, there was approximately $476 million outstanding of 5.59% short-term money-pool borrowings.

The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.

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