Published on 8/7/2017 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy prices $1.75 billion of senior notes in three tranches
By Cristal Cody
Tupelo, Miss., Aug. 7 – Duke Energy Corp. priced $1.75 billion of senior notes (Baa1/BBB+/BBB+) in three tranches on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
Duke Energy priced $500 million of 2.4% five-year notes at 99.793 to yield 2.444% and a spread of 63 basis points over Treasuries.
The company sold $750 million of 3.15% 10-year notes at a Treasuries plus 93 bps spread. The notes priced at 99.719 to yield 3.183%.
In the final 30-year tranche, Duke Energy priced $500 million of 3.95% notes at 99.598 to yield 3.973% and with a Treasuries plus 113 bps spread.
The notes priced on the tight side of talk.
Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG were the bookrunners.
Proceeds will be used to repay at maturity $700 million of 1.625% senior notes due Aug. 15, 2017, to repay commercial paper and for general corporate purposes.
The energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $1.75 billion
|
| Description: | Senior notes
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch and MUFG
|
| Senior co-manager: | Loop Capital Markets LLC
|
| Co-managers: | BB&T Capital Markets, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc. and Williams Capital Group, LP
|
| Junior co-managers: | Academy Securities, | Inc., Blaylock Van, LLC, CastleOak Securities, LP and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | Aug. 7
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 2.4%
|
| Price: | 99.793
|
| Yield: | 2.444%
|
| Spread: | Treasuries plus 63 bps
|
| Call features: | Make-whole call of Treasuries plus 10 bps; on or after July 15, 2022 at par
|
| Price guidance: | Treasuries plus 65 bps area, plus or minus 2 bps
|
|
|
| Ten-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 15, 2027
|
| Coupon: | 3.15%
|
| Price: | 99.719
|
| Yield: | 3.183%
|
| Spread: | Treasuries plus 93 bps
|
| Call features: | Make-whole call of Treasuries plus 15 bps; on or after May 15, 2027 at par
|
| Price guidance: | Treasuries plus 95 bps area, plus or minus 2 bps
|
|
|
| Thirty-year notes
|
| Amount: | $500 million
|
| Maturity: | Aug. 15, 2047
|
| Coupon: | 3.95%
|
| Price: | 99.598
|
| Yield: | 3.973%
|
| Spread: | Treasuries plus 113 bps
|
| Call features: | Make-whole call of Treasuries plus 20 bps; on or after Feb. 15, 2047at par
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 2 bps
|
|
|
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