Duke Energy talks $1.5 billion three-year convertible notes to yield 3.875% to 4.375%, up 25% to 30%

By Abigail W. Adams

Portland, Me., April 3 – Duke Energy Corp. plans to price $1.5 billion of three-year convertible notes (Baa2/BBB) after the market close on Monday with price talk for a coupon of 3.875% to 4.375% and an initial conversion premium of 25% to 30%, according to a market source.

Barclays, J.P. Morgan Securities LLC, BofA Securities Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are bookrunners for the Rule 144A offering, which carries a greenshoe of $225 million.

The notes are non-callable.

There is takeover and dividend protection via a conversion rate adjustment above $1.005 per quarter.

Proceeds will be used to repay a portion of the company’s commercial paper and for general corporate purposes.

Duke Energy is a Charlotte, N.C.-based electric and natural gas utility company.

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