By Andrea Heisinger
Omaha, Jan. 7 - Duke Energy Carolinas, LLC priced an upsized $900 million of first and refunding mortgage bonds in two tranches Monday, market sources said.
The bonds (A2/A) were upsized from $600 million.
A $400 million tranche of 5.25% 10-year bonds priced at 99.66 to yield 5.294%, or Treasuries plus 145 basis points. They have a make-whole call at Treasuries plus 25 bps.
A $500 million tranche of 6% 30-year bonds priced at 99.93 to yield 6.005%, or Treasuries plus 165 bps. They have a make-whole call at Treasuries plus 30 bps.
Bookrunners were J.P. Morgan Securities Inc. and Wachovia Capital Securities LLC.
Proceeds will be used for capital expenditures for ongoing construction and for general corporate purposes. This could include repayment of commercial paper as it matures.
The unit of Duke Energy is based in Charlotte, N.C.
| Issuer: | Duke Energy Carolinas, LLC
|
| Issue: | First and refunding mortgage bonds
|
| Total amount: | $900 million, upsized from $600 million
|
| Bookrunners: | J.P. Morgan Securities Inc., Wachovia Capital Securities LLC
|
| Trade date: | Jan. 7
|
| Settlement date: | Jan. 10
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
|
|
| 10-year tranche
|
| Amount: | $400 million
|
| Maturity: | Jan. 15, 2018
|
| Coupon: | 5.25%
|
| Price: | 99.66
|
| Yield: | 5.294%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 30-year tranche
|
| Amount: | $500 million
|
| Maturity: | Jan. 15, 2038
|
| Coupon: | 6%
|
| Price: | 99.93
|
| Yield: | 6.005%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
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