By Wendy Van Sickle
Columbus, Ohio, Jan. 9 – Duke Energy Corp. priced a total of $150 million more 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 a $50 million add-on to its 4.85% notes due Jan. 5, 2027 at 99.906 to yield 4.884%. The notes priced with a 75 basis points spread to the benchmark Treasury.
Duke Energy also sold a $100 million add-on to its 4.85% notes due Jan. 5, 2029 at 99.68 to yield 4.923%. 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.
The add-ons will be consolidated with the $550 million of the notes due Jan. 5, 2027 (Cusip: 26441CCB9) that priced at 99.989 and the $550 million of the notes due Jan. 5, 2029 (Cusip: 26441CCC7) that priced at 99.881 on Jan. 2.
Wells Fargo Securities, LLC was the only bookrunner for the tap offering.
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.
| Issuer: | Duke Energy Corp.
|
| Amount: | $150 million
|
| Issue: | Senior notes
|
| Bookrunner: | Wells Fargo Securities, LLC
|
| 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. 9
|
| Settlement date: | Jan. 12
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Distribution: | SEC registered
|
|
|
| 2027 notes
|
| Amount: | $50 million add-on
|
| Maturity: | Jan. 5, 2027
|
| Coupon: | 4.85%
|
| Price: | 99.906
|
| Yield: | 4.884%
|
| Spread: | Treasuries plus 75 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps at any time
|
| Cusip: | 26441CCB9
|
| Prior issuance: | $550 million on Jan. 5
|
|
|
| 2029 notes
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| Amount: | $100 million add-on
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| Maturity: | Jan. 5, 2029
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| Coupon: | 4.85%
|
| Price: | 99.68
|
| Yield: | 4.923%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call at Treasuries plus 25 bps until Dec. 5, 2028; thereafter at par
|
| Cusip: | 26441CCC7
|
| Prior issuance: | $550 million on Jan. 5
|
|
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