Duke Energy closes $6 billion facility, provides 'valuable' liquidity

By Aleesia Forni

Columbus, Ohio, Nov. 28 - Duke Energy Corp. entered into a new $6 billion five-year credit facility, according to an 8-K filed with the Securities and Exchange Commission on Friday.

The company has immediate access to $4 billion under the agreement, and the remaining $2 billion becomes available after the closing of Duke Energy's merger with Progress Energy Inc.

Pricing on the facility ranges from 90 basis points to 147.5 bps based on the company's credit rating.

Facility fees range from 10 bps to 27.5 bps.

The new agreement supports Duke Energy's commercial paper program, as well as provides a "valuable" source of liquidity.

The credit facility replaces the company's existing $3.14 billion facility, as well as three Progress Energy facilities totaling $2 billion.

"We are very pleased with this new agreement, as well as the strength and diversity of the banks that are participating," Duke Energy's senior vice president of investor relations and treasurer, Stephen G. De May, said in a news release.

"This credit agreement will be a significant source of our liquidity for many years to come and adds to the financial strength and flexibility of the company's balance sheet."

Bank of China, New York Branch; Barclays Capital; Citigroup Global Markets Inc.; Credit Suisse Securities (USA) LLC; Industrial and Commercial Bank of China Ltd., New York Branch; J.P. Morgan Securities LLC; Bank of America Merrill Lynch; RBS Securities Inc.; UBS Securities LLC and Wells Fargo Securities LLC are joint lead arrangers and joint bookrunners.

Wells Fargo Bank NA is the administrative agent.

Bank of America NA and the Royal Bank of Scotland plc are the co-syndication agents.

Bank of China, New York Branch; Barclays Bank plc; Citibank NA; Credit Suisse AG, Cayman Islands Branch; Industrial and Commercial Bank of China Ltd., New York Branch, JPMorgan Chase Bank NA and UBS Securities LLC are the co-documentation agents.

Duke Energy is a Charlotte, N.C.-based electric power holding company, and Progress Energy is a Raleigh, N.C.-based energy company.

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