By Aleesia Forni
Virginia Beach, April 1 - Duke Energy Corp. sold an upsized $1 billion issue of senior notes (A3/BBB/BBB+) in two parts on Tuesday, according to a market source and a FWP filed with the Securities and Exchange Commission.
The issue's size was increased from $750 million.
A $400 million tranche of three-year floating-rate notes sold at par to yield Libor plus 38 basis points. The three-year notes were talked at the Libor plus 40 bps area.
There was also $600 million of 3.75% 10-year notes that priced at 99.941 to yield 3.757%, or Treasuries plus 100 bps. The 10-year notes were talked at the Treasuries plus 105 bps area.
Barclays, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and UBS Securities LLC were the bookrunners.
Proceeds will be used to repurchase eight series of Duke Energy Ohio Inc.'s tax exempt bonds, and remaining proceeds will be used for general corporate purposes.
The diversified energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion, upsized from $750 million
|
| Joint bookrunners: | Barclays, RBC Capital Markets LLC, Scotia Capital (USA) Inc., UBS Securities LLC
|
| Co-managers: | BBVA Securities Inc., Credit Agricole Securities (USA) Inc., Sandler O'Neill & Partners LP, Santander Investment Securities Inc., Williams Capital Group, LP
|
| Trade date: | April 1
|
| Settlement date: | April 4
|
| Ratings: | Moody's: A3
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
|
|
| Floaters due 2017
|
| Amount: | $400 million
|
| Maturity: | April 3, 2017
|
| Coupon: | Libor plus 38 bps
|
| Price: | Par
|
| Yield: | Libor plus 38 bps
|
| Price talk: | Libor plus 40 bps area
|
|
|
| Notes due 2024
|
| Amount: | $600 million
|
| Maturity: | April 15, 2024
|
| Coupon: | 3.75%
|
| Price: | 99.941
|
| Yield: | 3.757%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 105 bps area
|
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