By Aleesia Forni
New York, Nov. 16 – Duke Energy Corp. sold a $1 billion two-part offering of senior notes (A3/BBB+/BBB+) in new and reopened tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold a $400 million tap of its existing 3.75% notes due April 15, 2024 at Treasuries plus 135 basis points, or 100.926 to yield 3.618%.
The original $600 million issue priced at Treasuries plus 100 bps on April 1, 2015.
A second $600 million 4.8% tranche of notes maturing on Dec. 15, 2045 sold at Treasuries plus 175 bps. Pricing was at 99.664 to yield 4.821%.
Both tranches sold in line with initial price thoughts.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to repay outstanding commercial paper, to repay at maturity Progress Energy Inc.’s $300 million of 5.625% senior notes due Jan. 15, 2016 and for general corporate purposes.
The diversified energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Issue: | Senior notes
|
| Amount: | $1 billion
|
| Bookrunners: | J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, MUFG, Scotia Capital (USA) Inc.
|
| Senior co-manager: | Loop Capital Markets LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, KeyBanc Capital Markets Inc., SMBC Nikko Securities America Inc., Williams Capital Group LP
|
| Junior co-managers: | Drexel Hamilton LLC, Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Nov. 16
|
| Settlement date: | Nov. 19
|
| Ratings: | Moody’s: A3
|
| Standard & Poor’s: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2024
|
| Amount: | $400 million
|
| Maturity: | April 15, 2024
|
| Coupon: | 3.75%
|
| Price: | 100.926
|
| Yield: | 3.618%
|
| Spread: | Treasuries plus 135 bps
|
| Price talk: | Treasuries plus 135 bps area
|
| Make-whole call: | Treasuries plus15 bps prior to Jan. 15, 2024, then callable at par
|
| Total issue size: | $1 billion
|
|
|
| Notes due 2045
|
| Amount: | $600 million
|
| Maturity: | Dec. 15, 2045
|
| Coupon: | 4.8%
|
| Price: | 99.664
|
| Yield: | 4.821%
|
| Spread: | Treasuries plus 175 bps
|
| Price talk: | Treasuries plus 175 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to June 15, 2045, then callable at par
|
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