Published on 8/17/2020 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy Progress prices $1.3 billion first mortgage bonds, floating-rate notes
By Cristal Cody
Tupelo, Miss., Aug. 17 – Duke Energy Progress Inc. priced $1.3 billion of first mortgage bonds and floating-rate notes in two tranches on Monday, according to FWP filings with the Securities and Exchange Commission.
The company priced $700 million of floating-rate notes due Feb. 18, 2022 (A2/A-) at par to yield Libor plus 18 basis points.
Duke Energy Progress sold $600 million of 2.5% first mortgage bonds (Aa3/A) at 99.435 to yield 2.527%, or a Treasuries plus 110 bps spread.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC were the bookrunners of the mortgage bonds.
Citigroup, Academy Securities, Inc., C.L. King & Associates, Inc., Great Pacific Securities, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC were the bookrunners of the floaters.
Proceeds will be used to repay at maturity the company’s $300 million of floating-rate first mortgage bonds due Sept. 8, 2020, to repay outstanding debt under the company’s two-year term loan facility that expires in December and for general company purposes.
Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.
| Issuer: | Duke Energy Progress Inc.
|
| Amount: | $1.3 billion
|
| Description: | First mortgage bonds and floating-rate notes
|
| Trade date: | Aug. 17
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| Settlement date: | Aug. 20
|
| Distribution: | SEC registered
|
|
|
| 18-month floaters
|
| Amount: | $700 million
|
| Description: | Series A floating-rate notes
|
| Maturity: | Feb. 18, 2022
|
| Bookrunners: | Citigroup Global Markets Inc., Academy Securities, Inc., C.L. King & Associates, Inc., Great Pacific Securities, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc. and Siebert Williams Shank & Co., LLC
|
| Coupon: | Libor plus 18 bps
|
| Price: | Par
|
| Yield: | Libor plus 18 bps
|
| Call feature: | On or after Feb. 18, 2021 at par
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
|
|
| 30-year bonds
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| Amount: | $600 million
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| Description: | First mortgage bonds
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| Maturity: | Aug. 15, 2050
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG, PNC Capital Markets LLC, TD Securities (USA) LLC and Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets, LLC, KeyBanc Capital Markets Inc. and Santander Investment Securities Inc.
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| Coupon: | 2.5%
|
| Price: | 99.435
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| Yield: | 2.527%
|
| Spread: | Treasuries plus 110 bps
|
| Call feature: | Make-whole call before Feb. 15, 2050 at price equal to greater of par and Treasuries plus 20 bps; thereafter at par
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
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