By Devika Patel
Knoxville, Tenn., Jan. 4 – Duke Energy Ohio, Inc. priced $800 million of first mortgage bonds (A2/A) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of 3.65% 10-year notes at 99.956 to yield 3.655%, or 110 basis points over Treasuries.
Duke Energy Ohio priced $400 million of 4.3% 30-year notes at 140 bps over Treasuries. These notes were priced at 99.812 to yield 4.311%.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and U.S. Bancorp Investments Inc. were the bookrunners.
Proceeds will be used to repay at maturity $450 million of the company’s 5.45% first mortgage bonds due April 1, 2019, to pay down some commercial paper 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 Ohio, Inc.
|
| Amount: | $800 million
|
| Description: | First mortgage bonds
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | BB&T Capital Markets, BNY Mellon Capital Markets LLC and Williams Capital Group LP
|
| Junior co-managers: | CastleOak Securities LP and Samuel A. Ramirez & Co. Inc.
|
| Trade date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 2029 bonds
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| Amount: | $400 million
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| Maturity: | Feb. 1, 2029
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| Coupon: | 3.65%
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| Price: | 99.956
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| Yield: | 3.655%
|
| Spread: | Treasuries plus 110 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Nov. 1, 2028 and then a par call
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|
|
| 2049 bonds
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| Amount: | $400 million
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| Maturity: | Feb. 1, 2049
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| Coupon: | 4.3%
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| Price: | 99.812
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| Yield: | 4.311%
|
| Spread: | Treasuries plus 140 bps
|
| Call feature: | Make-whole call at Treasuries plus 25 bps until Aug. 1, 2048 and then a par call
|
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