Published on 3/3/2014 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy prices $650 million first mortgage bonds due 2017, 2044
By Cristal Cody
Tupelo, Miss., March 3 - Duke Energy Progress Inc. raised $650 million in a two-part offering of first mortgage bonds (Aa2/A/A+), according to a FWP filing with the Securities and Exchange Commission on Monday.
The company priced $250 million of floating-rate first mortgage bonds due March 6, 2017 at par to yield Libor plus 20 basis points.
Duke Energy also sold $400 million of 4.375% first mortgage bonds due March 30, 2044 at 99.98 to yield 4.376%. The long bonds priced with a spread of 82 bps over Treasuries.
Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. were the bookrunners.
Duke Energy Progress plans to use the proceeds to repay short-term debt under a money-pool borrowing arrangement with parent company Duke Energy Corp. and for general corporate purposes.
Raleigh, N.C.-based Duke Energy Progress generates and distributes electricity in North Carolina and South Carolina.
| Issuer: | Duke Energy Progress Inc.
|
| Amount: | $650 million
|
| Securities: | First mortgage bonds
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Mitsubishi UFJ Securities (USA), Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | BNY Mellon Capital Markets, LLC, Fifth Third securities, Inc., KeyBanc Capital Markets Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Drexel Hamilton, LLC, Loop Capital Markets LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc.
|
| Pricing date: | March 3
|
| Settlement date: | March 6
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: A
|
| Fitch: A+
|
|
|
| Floating-rate bonds
|
| Amount: | $250 million
|
| Securities: | Floating-rate first mortgage bonds
|
| Maturity: | March 6, 2017
|
| Coupon: | Libor plus 20 bps
|
| Price: | Par
|
| Yield: | Libor plus 20 bps
|
| Call feature: | None
|
|
|
| Fixed-rate bonds
|
| Amount: | $400 million
|
| Securities: | Fixed-rate first mortgage bonds
|
| Maturity: | March 30, 2044
|
| Coupon: | 4.375%
|
| Price: | 99.98
|
| Yield: | 4.376%
|
| Spread: | Treasuries plus 82 bps
|
| Call feature: | Prior to the six months before maturity at Treasuries plus 15 bps; on or after six months prior to maturity at par
|
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