Published on 3/25/2019 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Duke Energy sells $1 billion $25-par 5.75% cumulative redeemable perpetual preferreds
By James McCandless
San Antonio, March 25 – Duke Energy Corp. priced a $1 billion offering of series A cumulative redeemable perpetual preferred stock (Baa3/BBB/BBB-) at par with a dividend of 5.75% on Monday, according to a FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal was announced Monday morning.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets, LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Joint lead managers are Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BB&T Capital Markets.
The preferreds are redeemable on or after June 15, 2024 at par. Prior to that, they are redeemable within 120 days after a ratings event.
Duke Energy plans to use the proceeds for general corporate purposes, which may include acquisitions, repayment of debt, capital expenditures and working capital.
The company plans to list the preferreds on the New York Stock Exchange.
Duke Energy is a Charlotte, N.C.-based electric utility company.
| Issuer: | Duke Energy Corp.
|
| Description: | Series A cumulative redeemable perpetual preferred stock
|
| Amount: | $1 billion, or 40 million shares
|
| Maturity: | Perpetual
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, RBC Capital Markets, LLC and Wells Fargo Securities, LLC
|
| Lead managers: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BB&T Capital Markets
|
| Co-managers: | TD Securities (USA) LLC, Academy Securities, Inc., CastleOak Securities, LP, C.L. King & Associates, Inc. and Drexel Hamilton, LLC
|
| Junior managers: | Great Pacific Securities, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert Cisneros Shank & Co., LLC and Williams Capital Group, LP
|
| Dividend: | 5.75%
|
| Price: | Par of $25.00
|
| Yield: | 5.75%
|
| Call: | June 15, 2024 at par; prior to that, within 120 days after a ratings event
|
| Pricing date: | March 25
|
| Settlement date: | March 29
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Listing: | NYSE
|
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