Duke Energy to price additional 4.85% senior notes due 2027, 2029

By William Gullotti

Buffalo, N.Y., Jan. 9 – Duke Energy Corp. intends to price additional 4.85% fixed-rate senior notes due 2027 and 2029, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be issued under the same indentures and Cusip numbers as their respective initial offerings (Baa2/BBB).

As previously reported Jan. 2, Duke priced a $550 million tranche due Jan. 5, 2027 (Cusip: 26441CCB9) at 99.989 and a $550 million tranche due Jan. 5, 2029 (Cusip: 26441CCC7) at 99.881.

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.

Wells Fargo Securities, LLC is the only returning bookrunner for the tap offering.

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

The issuer is again using in-house counsel and Hunton Andrews Kurth LLP. Likewise, Sidley Austin LLP is advising the returning underwriter.

Proceeds from the additional notes be used to repay a portion of the company’s outstanding commercial paper and for general corporate purposes. As of Jan. 5, Duke had $3 billion of commercial paper outstanding with a weighted average interest rate of 5.62%.

Duke Energy is a diversified energy company based in Charlotte, N.C.

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