Duke Energy Ohio to redeem $402 million tax-exempt bonds via new notes

By Tali Rackner

Norfolk, Va., April 1 - Duke Energy Corp. plans to redeem eight series of tax-exempt bonds with respect to which Duke Energy Ohio, Inc. is obligated with the proceeds from a new notes offering, according to a 424B5 filing with the Securities and Exchange Commission.

The bonds have a total amount of $402 million, of which $84 million is due on Sept. 1, 2030, $84 million is due on Sept. 1, 2037, $94 million is due on Nov. 1, 2039 and $140 million is due on Dec. 1, 2041, and they have a weighted average interest rate of 0.29% as of March 24.

Duke Energy Ohio's capital structure is being restructured in contemplation of the planned transfer of its generation assets to a non-regulated affiliate.

The remaining proceeds will be used for general corporate purposes, including the repayment of outstanding commercial paper, a portion of the proceeds of which and cash on hand were used to fund the payment at maturity of $750 million principal amount of 6.3% senior notes due Feb. 1, 2014 of Duke Energy and $300 million principal amount of 6.05% senior notes due March 15, 2014 of its subsidiary, Progress Energy, Inc.

The energy company is based in Charlotte, N.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.