By Andrea Heisinger
New York, Aug. 25 - Duke Energy Corp. sold an upsized $1 billion of senior notes (Baa2/BBB+/) in two tranches Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The size was increased from $800 million, a source close to the deal said.
A $500 million tranche of 3.95% five-year notes priced at 99.939 to yield 3.962%, or Treasuries plus 145 basis points. The notes have a make-whole call at Treasuries plus 25 bps.
The $500 million of 5.05% 10-year notes priced at 99.623 to yield 5.098%, or 160 bps over Treasuries. The tranche has a make-whole call at Treasuries plus 25 bps.
There was no official price guidance for the sale, the source said, adding that the notes were launched at the spreads at which they priced.
Bank of New York Mellon Capital Markets, Credit Suisse Securities, J.P. Morgan Securities Inc. and RBS Securities Inc. ran the books.
Co-managers were BBVA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities and Mizuho Securities USA Inc.
Proceeds will be used to repay a portion of commercial paper as it matures, to fund capital expenditures in unregulated businesses and for general corporate purposes.
The electric company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Issue: | Senior notes
|
| Total amount: | $1 billion, increased from $800 million
|
| Bookrunners: | Bank of New York Mellon Capital Markets, Credit Suisse Securities, J.P. Morgan Securities Inc., RBS Securities Inc.
|
| Co-managers: | BBVA Securities Inc., BNP Paribas Securities Corp., Deutsche Bank Securities Inc., Mitsubishi UFJ Securities, Mizuho Securities USA Inc.
|
| Trade date: | Aug. 25
|
| Settlement date: | Aug. 28
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2014
|
| Coupon: | 3.95%
|
| Price: | 99.939
|
| Yield: | 3.962%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2019
|
| Coupon: | 5.05%
|
| Price: | 99.623
|
| Yield: | 5.098%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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