Published on 8/9/2016 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy prices $3.75 billion of senior notes in three tranches
By Cristal Cody
Eureka Springs, Ark., Aug. 9 – Duke Energy Corp. sold $3.75 billion of five-, 10- and 30-year senior notes (Baa1/BBB+/BBB+) on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 1.8% five-year notes at 99.99 to yield 1.802%, or 70 basis points over Treasuries. The notes priced on the tight side of guidance in the 75 bps area over Treasuries.
Duke Energy priced $1.5 billion of 2.65% 10-year notes at 99.692 to yield 2.685%. The notes priced with a spread of 115 bps over Treasuries, on the tight side of guidance in the 120 bps area over Treasuries.
The company sold $1.5 billion of 3.75% 30-year notes at 99.944 to yield 3.753%, or 150 bps over Treasuries, on the tight side of guidance of 155 bps area.
Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., MUFG and UBS Securities LLC were the bookrunners.
Proceeds will be used to fund a portion of costs in connection with the company’s acquisition of Piedmont Natural Gas Co., Inc. The 2021 notes have a par call date of Aug. 1, 2021, and the 2026 notes have a par call date of June 1, 2026. Also, the 2046 notes have a par call date of March 1, 2046.
The diversified energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $3.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Mizuho Securities USA Inc., MUFG, UBS Securities LLC
|
| Co-managers: | RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 12
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 1, 2021
|
| Coupon: | 1.8%
|
| Price: | 99.99
|
| Yield: | 1.802%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 75 bps area
|
| Call feature: | Make-whole call before Aug. 1, 2021 at Treasuries plus 12.5 bps; par call thereafter
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Sept. 1, 2026
|
| Coupon: | 2.65%
|
| Price: | 99.692
|
| Yield: | 2.685%
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Treasuries plus 120 bps area
|
| Call feature: | Make-whole call before June 1, 2026 at Treasuries plus 20 bps; par call thereafter
|
|
|
| 30-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Sept. 1, 2046
|
| Coupon: | 3.75%
|
| Price: | 99.944
|
| Yield: | 3.753%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area
|
| Call feature: | Make-whole call before March 1, 2046 at Treasuries plus 25 bps; par call thereafter
|
© 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.
