By James McCandless
San Antonio, Sept. 9 – Duke Energy Corp. priced a $1 billion offering of $1,000-par series B fixed-rate reset cumulative redeemable perpetual preferred stock (Baa3/BBB/BBB-) with a dividend of 4.875%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal was announced on Monday morning.
Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.
The preferreds are redeemable on or after Sept. 16, 2024 or on any fifth anniversary of that date at par. Prior to that, the preferreds are redeemable within 120 days after a ratings event at 102.
Duke Energy plans to use the proceeds to repay a portion of its outstanding commercial paper, to repay at maturity $500 million principal amount of its outstanding 5.05% senior notes due Sept. 15, 2019 and for general corporate purposes.
The company does not plan to list the preferreds on any securities exchange.
Duke Energy is a Charlotte, N.C.-based utilities company.
| Issuer: | Duke Energy Corp.
|
| Description: | Series B fixed-rate reset cumulative redeemable perpetual preferred stock
|
| Amount: | $1 billion, or 1 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC
|
| Co-managers: | Regions Securities LLC, Santander Investment Securities Inc. and Williams Capital Group, LP
|
| Junior co-managers: | CastleOak Securities, LP, Drexel Hamilton, LLC and Siebert Cisneros Shank & Co., LLC
|
| Dividend: | 4.875%
|
| Price: | Par of $1,000
|
| Yield: | 4.875%
|
| Call: | On or after Sept. 16, 2024 or on any fifth anniversary of that date at par; prior to that, within 120 days after a ratings event at 102
|
| Pricing date: | Sept. 9
|
| Settlement date: | Sept. 12
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Listing: | None
|
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