New Issue: Duke Energy sells $500 million 3.75% mortgage bonds due 2045 at 100 bps spread

By Aleesia Forni

Virginia Beach, March 9 – Duke Energy Carolinas LLC priced $500 million of 3.75% first and refunding mortgage bonds (Aa2/A/A+) due 2045 on Monday at Treasuries plus 100 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.

Pricing was at 99.166 to yield 3.796%.

Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities USA Inc. and U.S. Bancorp Investments Inc. were the bookrunners.

Proceeds will be used to repay at maturity $500 million of the company’s 5.3% first and refunding mortgage bonds due Oct. 1, 2015.

The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.

Issuer:	Duke Energy Carolinas LLC
Amount:	$500 million
Description:	First and refunding mortgage bonds
Maturity:	June 1, 2045
Bookrunners:	Barclays, BofA Merrill Lynch, Citigroup Global Markets Inc., Mizuho Securities USA Inc., U.S. Bancorp Investments Inc.
Co-managers:	CIBC World Markets Corp., DNB Markets, Inc., HSBC Securities (USA) Inc., SMBC Nikko Securities America, Inc.
Junior co-managers:	Mischler Financial Group, Inc., Williams Capital Group, LP
Coupon:	3.75%
Price:	99.166
Yield:	3.796%
Spread:	100 bps over Treasuries
Make-whole call:	15 bps prior to Dec. 1, 2044, then callable at par
Trade date:	March 9
Settlement date:	March 12
Ratings:	Moody’s: Aa2
	Standard & Poor’s: A
	Fitch: A+
Distribution:	SEC registered
Price talk:	115 bps area over Treasuries

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.