By James McCandless
San Antonio, Sept. 11 – Duke Energy Corp. priced an upsized $500 million of $25-par junior subordinated debentures (Baa2/BBB/BBB-) due Sept. 15, 2078 with a coupon of 5.625%, according to an FWP filing with the Securities and Exchange Commission.
The deal was announced Tuesday morning at an initial size of $200 million and came on the tight side of talk for a coupon in the 5.75% area.
There is no greenshoe.
BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Lead managers are Barclays, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
The debentures are redeemable any time after Sept. 15, 2023 at par plus accrued interest.
The debentures may also be redeemed prior to Sept. 15, 2023 upon a tax event or ratings agency event.
Interest will be payable on the 15th day of March, June, September and December, beginning Dec. 15.
Duke Energy plans to use the proceeds to repay a portion of its outstanding commercial paper and for general corporate purposes.
The company intends to list the debentures on the New York Stock Exchange.
Duke Energy is a Charlotte, N.C.-based energy company.
| Issuer: | Duke Energy Corp.
|
| Description: | Junior subordinated debentures
|
| Amount: | $500 million
|
| Maturity: | Sept. 15, 2078
|
| Bookrunners: | BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Lead managers: | Barclays, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc.
|
| Co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets, LLC and KeyBanc Capital Markets Inc.
|
| Junior co-managers: | Academy Securities, Inc. and C.L. King & Associates, Inc.
|
| Coupon: | 5.625%
|
| Price: | Par of $25
|
| Yield: | 5.625%
|
| Call: | On or after Sept. 15, 2023 at par; prior to that, upon a tax event or ratings agency event
|
| Pricing date: | Sept. 11
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Listing: | NYSE
|
| Talk: | 5.75% area
|
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