Duke Energy Ohio offers first mortgage bonds due 2054

By Mary-Katherine Stinson

Lexington, Ky., March 11 – Duke Energy Ohio, Inc. is offering first mortgage bonds due March 15, 2054, according to a 424B5 filing with the Securities and Exchange Commission.

The notes are callable at a make-whole premium plus a margin any time prior to Sept. 15, 2053. For the last six months, they are callable at par.

Citigroup Global Markets Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc. are the joint bookrunners for the offering.

Bank of New York Mellon Trust Co., NA is the trustee.

Duke Energy will be advised by in-house counsel and Hunton Andrews Kurth LLP. Sidley Austin LLP is counsel to the underwriters.

Proceeds will be used to pay down a portion of the outstanding intercompany short-term debt under the money-pool borrowing arrangement with Duke Energy Corp. and for general corporate purposes. On Feb. 29, the company had approximately $624 million of outstanding short-term money-pool borrowings at an annual interest rate of 5.48%.

Cincinnati-based public utility Duke Energy Ohio is a subsidiary of Duke Energy Corp.

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