By Andrea Heisinger
New York, Sept. 18 - Duke Energy Carolinas, LLC priced a $650 million offering of 4% 30-year first mortgage bonds on Tuesday at a spread of 105 basis points over Treasuries, a market source said.
There was a do-not-grow provision on the sale.
The bonds (A1/A/A+) were sold at 99.204 to yield 4.046%. There is a make-whole call at 20 bps over Treasuries until March 30, 2042, with a par call after that date.
Barclays, RBS Securities Inc., Scotia Capital (USA) Inc. and UBS Securities LLC were the bookrunners.
Senior co-manager was China International Capital Corp. Hong Kong Securities Ltd.
Co-managers were KeyBanc Capital Markets Inc., Mizuho Securities (USA) Inc., SMBC Nikko Capital Markets Ltd. and U.S. Bancorp Investments, Inc.
Proceeds will be used to fund capital expenditures for the company's construction program and for general corporate purposes.
The Charlotte, N.C.-based company generates, transmits, distributes and sells electricity and is a wholly owned subsidiary of Duke Energy Corp.
| Issuer: | Duke Energy Carolinas LLC
|
| Issue: | First mortgage bonds
|
| Amount: | $650 million
|
| Maturity: | Sept. 30, 2042
|
| Bookrunners: | Barclays, RBS Securities Inc., Scotia Capital (USA) Inc., UBS Securities LLC
|
| Senior co-manager: | China International Capital Corp. Hong Kong Securities Ltd.
|
| Co-managers: | KeyBanc Capital Markets Inc., Mizuho Securities (USA) Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments, Inc.
|
| Coupon: | 4%
|
| Price: | 99.204
|
| Yield: | 4.046%
|
| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole at Treasuries plus 20 bps until March 30, 2042, par call after
|
| Trade date: | Sept. 18
|
| Settlement date: | Sept. 21
|
| Ratings: | Moody's: A1
|
| Standard & Poor's: A
|
| Fitch: A+
|
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