Published on 3/1/2022 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Duke Energy Carolinas sells $1.15 billion 10-, 30-year mortgage bonds
By Wendy Van Sickle
Columbus, Ohio, March 1 – Duke Energy Carolinas LLC priced a $1.15 billion two-tranche offering of first and refunding mortgage bonds (Aa3/A) on Tuesday that will be used to fund sustainability projects, according to an FWP filing with the Securities and Exchange Commission.
The company priced $500 million of 2.85% 10-year bonds at 99.939 to yield 2.857%, or Treasuries plus 115 basis points.
Duke Energy priced $650 million of 3.55% 30-year bonds at 99.687 to yield 3.567%. The bonds priced with a spread of 145 bps over Treasuries.
The bookrunners are Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Guggenheim Securities, LLC and PNC Capital Markets LLC.
Proceeds will be used to finance or refinance, in whole or in part, existing or new eligible projects in the United States. Eligible projects include disbursements made in the two years prior to the issue date of the sustainability bonds or any time following the issue date of the sustainability bonds until March 15, 2025.
Eligible projects are projects that meet criteria within the following categories: renewable energy, energy efficiency, clean transportation, climate change adaptation and socioeconomic advancement and empowerment.
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 Carolinas LLC
|
| Amount: | $1.15 billion
|
| Issue: | Sustainability first and refunding mortgage bonds
|
| Bookrunners: | Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Guggenheim Securities, LLC and PNC Capital Markets LLC
|
| Co-managers: | Loop Capital Markets LLC, Regions Securities LLC, CastleOak Securities, LP, Mischler Financial Group, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Bank of New York Mellon Trust Co., NA
|
| Counsel to issuer: | In-house counsel and also Hunton Andrews Kurth LLP
|
| Counsel to underwriters: | Sidley Austin LLP
|
| Trade date: | March 1
|
| Settlement date: | March 4
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year bonds
|
| Amount: | $500 million
|
| Maturity: | March 15, 2032
|
| Coupon: | 2.85%
|
| Price: | 99.939
|
| Yield: | 2.857%
|
| Spread: | Treasuries plus 115 bps
|
| Call features: | Make-whole call before Dec. 15, 2032 at Treasuries plus 20 bps; thereafter at par
|
| Cusip: | 26442CBG8
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | March 15, 2052
|
| Coupon: | 3.55%
|
| Price: | 99.687
|
| Yield: | 3.567%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Sept. 15, 2051 at Treasuries plus 25 bps; thereafter at par
|
| Cusip: | 26442CBH6
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
