By Andrea Heisinger
New York, Aug. 13 - Duke Energy Corp. priced $1.2 billion of senior notes (Baa2/BBB/BBB+) in two maturities on Monday, an informed source said.
The $700 million of 1.625% five-year notes sold at 99.671 to yield 1.694% with a spread of Treasuries plus 100 basis points. The tranche priced at the tight end of talk that was in the 105 bps area, the source said.
The tranche has a make-whole call at 15 bps over Treasuries.
A $500 million tranche of 3.05% 10-year notes priced at 99.616 to yield 3.095% with a spread of 145 bps over Treasuries. The notes were sold in line with guidance in the 145 bps area.
There is a make-whole call at 25 bps over Treasuries until May 15, 2022 with a par call after that date.
Bookrunners were BNP Paribas Securities Corp., Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC.
Co-managers were Credit Agricole Securities (USA) Inc., KeyBanc Capital Markets Inc., Lloyds Securities Inc. and Santander Investment Securities Inc.
Proceeds will be used to repay at maturity Duke Energy Ohio Inc.'s $500 million of 5.7% debentures due on Sept. 15, with any remainder for general corporate purposes, including repayment of commercial paper.
The diversified energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Bank of America Merrill Lynch, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC
|
| Co-managers: | Credit Agricole Securities (USA) Inc., KeyBanc Capital Markets Inc., Lloyds Securities Inc. and Santander Investment Securities Inc.
|
| Trade date: | Aug. 13
|
| Settlement date: | Aug. 16
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | Aug. 15, 2017
|
| Coupon: | 1.625%
|
| Price: | 99.671
|
| Yield: | 1.694%
|
| Spread: | Treasuries plus 100 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 105 bps area
|
|
|
| 10-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 3.05%
|
| Price: | 99.616
|
| Yield: | 3.095%
|
| Spread: | Treasuries plus 145 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to May 15, 2022, par call after
|
| Price talk: | 145 bps area
|
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