Published on 6/4/2019 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy sells $1.2 billion of 10-, 30-year senior notes
By Cristal Cody
Tupelo, Miss., June 4 – Duke Energy Corp. priced $1.2 billion of senior notes (Baa1/BBB+/BBB+) in two tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $600 million of 3.4% 10-year notes at 99.848 to yield 3.418% and a spread of 130 basis points over Treasuries.
Duke Energy placed $600 million of 4.2% 30-year notes at 99.542 to yield 4.227%, or a Treasuries plus 162 bps spread.
MUFG, Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the bookrunners.
Proceeds will be used to repay commercial paper and for general corporate purposes.
The energy company is based in Charlotte, N.C.
| Issuer: | Duke Energy Corp.
|
| Amount: | $1.2 billion
|
| Description: | Senior notes
|
| Bookrunners: | MUFG, Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-managers: | Loop Capital Markets LLC, KeyBanc Capital Markets Inc. and Regions Securities LLC
|
| Junior co-managers: | CastleOak Securities, LP, Great Pacific Securities and Siebert Cisneros Shank & Co., LLC
|
| Trade date: | June 4
|
| Settlement date: | June 7
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | June 15, 2029
|
| Coupon: | 3.4%
|
| Price: | 99.848
|
| Yield: | 3.418%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call before March 15, 2029 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | June 15, 2049
|
| Coupon: | 4.2%
|
| Price: | 99.542
|
| Yield: | 4.227%
|
| Spread: | Treasuries plus 162 bps
|
| Call features: | Make-whole call before Dec. 15, 2048 at price equal to greater of par and Treasuries plus 25 bps; thereafter at par
|
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