By Cristal Cody
Tupelo, Miss., March 22 – Duke Energy Ohio, Inc. priced a $100 million add-on to its 3.7% first mortgage bonds due June 15, 2046 (A2/A) on Wednesday at a spread of 107 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The bonds priced at 93.462 to yield 4.085%.
Citigroup Global Markets Inc. and Loop Capital Markets LLC were the bookrunners.
The company originally sold $250 million of the bonds at 99.301 to yield 3.739%, or 125 bps over Treasuries, in an offering on June 20, 2016. The total outstanding now is $350 million.
The bonds have a make-whole call at the greater of par and Treasuries plus 20 bps until Dec. 15, 2045 and are then callable at par.
Proceeds from the deal will be used for capital expenditures for ongoing construction, capital maintenance and 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 Ohio, Inc.
|
| Amount: | $100 million reopening
|
| Description: | First mortgage bonds
|
| Maturity: | June 15, 2046
|
| Bookrunners: | Citigroup Global Markets Inc. and Loop Capital Markets LLC
|
| Coupon: | 3.7%
|
| Price: | 93.462 plus accrued interest
|
| Yield: | 4.085%
|
| Spread: | Treasuries plus 107 bps
|
| Call features: | Make-whole call before Dec. 15, 2045 at greater of par and Treasuries plus 20 bps; thereafter at par
|
| Trade date: | March 22
|
| Settlement date: | March 27
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
| Total outstanding: | $350 million, including $250 million priced on June 20, 2016 at 125 bps over Treasuries
|
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