By William Gullotti
Buffalo, N.Y., Feb. 26 – Duke Energy Indiana, LLC sold $300 million of 5.25% 10-year first mortgage bonds (Aa3/A) at a spread of 100 basis points over Treasuries on Monday, according to an FWP filing and a 424B5 filing with the Securities and Exchange Commission.
The notes priced at 99.669 to yield 5.293%.
The notes feature a make-whole call at Treasuries plus 15 bps until Dec. 1, 2033 and a par call thereafter.
BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC were the joint bookrunning managers.
Proceeds will be used to pay down a portion of the company’s outstanding intercompany short-term debt under a money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes. As of Jan. 31, the company had approximately $511 million of outstanding short-term money-pool borrowings at an annual interest rate of 5.54%.
The electricity provider is based in Plainfield, Ind.
| Issuer: | Duke Energy Indiana, LLC
|
| Amount: | $300 million
|
| Issue: | Series BBBB first mortgage bonds
|
| Maturity: | March 1, 2034
|
| Bookrunners: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC and TD Securities (USA) LLC
|
| Co-managers: | CIBC World Markets Corp., Regions Securities LLC, Siebert Williams Shank & Co., LLC, CAVU Securities LLC and Penserra Securities LLC
|
| Trustee: | Deutsche Bank National Trust Co.
|
| Counsel to issuer: | Hunton Andrews Kurth LLP and in-house counsel
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 5.25%
|
| Price: | 99.669
|
| Yield: | 5.293%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call at price equal to greater of par and Treasuries plus 15 bps before Dec. 1, 2033; thereafter at par
|
| Trade date: | Feb. 26
|
| Settlement date: | March 1
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Distribution: | SEC registered
|
| Cusip: | 26443TAE6
|
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