By Cristal Cody
Tupelo, Miss., Aug. 6 – Duke Energy Progress Inc. priced $800 million of first mortgage bonds (Aa3/A/) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $300 million of 3.375% five-year bonds at 99.993 to yield 3.376%, or a spread of Treasuries plus 57 basis points.
It also sold $500 million of 3.7% 10-year bonds at 99.981 to yield 3.702%. The issue priced with a Treasuries plus 77 bps spread.
J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.
Proceeds will be used to pay down intercompany short-term debt under Duke Energy Progress’ money-pool borrowing arrangement with Duke Energy Corp. 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: | $800 million
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| Description: | First mortgage bonds
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey Inc.
|
| Senior co-manager: | Loop Capital Markets LLC
|
| Co-managers: | Regions Securities LLC and Santander Investment Securities Inc.
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| Junior co-managers: | Drexel Hamilton, LLC and Great Pacific Securities
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
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| Amount: | $300 million
|
| Maturity: | Sept. 1, 2023
|
| Coupon: | 3.375%
|
| Price: | 99.993
|
| Yield: | 3.376%
|
| Spread: | Treasuries plus 57 bps
|
| Call feature: | Make-whole call before Aug. 1, 2023 at price equal to greater of par and Treasuries plus 10 bps; thereafter at par
|
|
|
| Ten-year notes
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| Amount: | $500 million
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| Maturity: | Sept. 1, 2028
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| Coupon: | 3.7%
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| Price: | 99.981
|
| Yield: | 3.702%
|
| Spread: | Treasuries plus 77 bps
|
| Call feature: | Make-whole call before June 1, 2028 at price equal to greater of par and Treasuries plus 12.5 bps; thereafter at par
|
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