Chicago, March 11 – Duke Energy Ohio, Inc. priced $425 million of 5.55% first mortgage bonds due 2054 (A2/A) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at 99.739 to yield 5.568%, or at Treasuries plus 130 basis points.
The notes are callable at a Treasuries plus 20 bps make-whole premium 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.
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.
| Issuer: | Duke Energy Ohio, Inc.
|
| Amount: | $425 million
|
| Issue: | First mortgage bonds
|
| Maturity: | March 15, 2054
|
| Bookrunners: | Citigroup Global Markets Inc., MUFG Securities Americas Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | Siebert Williams Shank & Co., LLC, Loop Capital Markets LLC, Scotia Capital (USA) Inc. and Mischler Financial Group, Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house and Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Coupon: | 5.55%
|
| Price: | 99.739
|
| Yield: | 5.568%
|
| Spread: | Treasuries plus 130 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Sept. 15, 2053; thereafter at par
|
| Trade date: | March 11
|
| Settlement date: | March 14
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Cusip: | 26442EAL4
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
