By Cristal Cody
Tupelo, Miss., March 10 – Duke Energy Indiana, LLC sold $550 million of 2.75% 30-year first mortgage bonds (Aa3/A) at a spread of Treasuries plus 165 basis points on Tuesday, compared to talk in the Treasuries plus 190 bps area, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.877 to yield 2.756%.
Final book size was $2.4 billion.
Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay at maturity $500 million of the company’s series PPP 3.75% first mortgage bonds due July 15, 2020 and to pay down a portion of outstanding intercompany short-term debt.
The electricity provider is based in Plainfield, Ind.
| Issuer: | Duke Energy Indiana, LLC
|
| Amount: | $550 million
|
| Description: | Series ZZZ first mortgage bonds
|
| Maturity: | April 1, 2050
|
| Bookrunners: | Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., RBC Capital Markets, LLC and U.S. Bancorp Investments Inc.
|
| Co-manager: | Siebert Williams Shank & Co., LLC
|
| Junior co-managers: | C.L. King & Associates, Inc. and Drexel Hamilton, LLC
|
| Coupon: | 2.75%
|
| Price: | 99.877
|
| Yield: | 2.756%
|
| Spread: | Treasuries plus 165 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 25 bps before Oct. 1, 2049; thereafter at par
|
| Trade date: | March 10
|
| Settlement date: | March 12
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 190 bps area
|
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