New Issue: Duke Energy Indiana sells $500 million 3.25% 30-year mortgage bonds at 120 bps spread

By Devika Patel

Knoxville, Tenn., Sept. 25 – Duke Energy Indiana, LLC priced $500 million of 3.25% 30-year series YYY first mortgage bonds (Aa3/A) at a spread of 120 basis points over Treasuries on Wednesday, according to an FWP filed with the Securities and Exchange Commission.

The notes priced at 97.763 to yield 3.369%.

BofA Securities, Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG and SunTrust Robinson Humphrey Inc. were the bookrunners.

Proceeds will be used to redeem at par three series of tax-exempt bonds, to pay down intercompany short-term debt and for general company purposes.

The electricity provider is based in Plainfield, Ind.

Issuer:	Duke Energy Indiana, LLC
Amount:	$500 million
Securities:	Series YYY first mortgage bonds
Maturity:	Oct. 1, 2049
Bookrunners:	BofA Securities, Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG and SunTrust Robinson Humphrey Inc.
Co-managers:	BB&T Capital Markets and KeyBanc Capital Markets Inc.
Junior co-managers:	Academy Securities, Inc., Great Pacific Securities and Samuel A. Ramirez & Co. Inc.
Coupon:	3.25%
Price:	97.763
Yield:	3.369%
Spread:	Treasuries plus 120 bps
Call features:	Make-whole call at Treasuries plus 20 bps until April 1, 2049; thereafter at par
Trade date:	Sept. 25
Settlement date:	Sept. 27
Ratings:	Moody’s: Aa3
	S&P: A

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