Duke Energy Progress offers first mortgage bonds due 2033, 2053

By Mary-Katherine Stinson

Lexington, Ky., March 6 – Duke Energy Progress, LLC is offering first mortgage bonds due March 15, 2033 and March 15, 2053, according to a 424B5 filing with the Securities and Exchange Commission.

The 2033 notes are callable at a make-whole premium plus a margin prior to Dec. 15, 2032, three months prior to the maturity date.

The 2053 notes are callable at a make-whole premium plus a margin any time prior to Sept. 15, 2052. For the last six months, they are callable at par.

Barclays, MUFG Securities Americas Inc., PNC Capital Markets LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., BNP Paribas Securities Corp., Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are the joint bookrunners.

Bank of New York Mellon is the trustee.

Duke Energy will be advised by in-house counsel and Hunton Andrews Kurth LLP. Sidley Austin LLP is listed as counsel to the bookrunners.

Funds will be used to repay at maturity $300 million aggregate principal amount of Duke’s first mortgage bonds, 3.375% series due Sept. 1, 2023, to pay down a portion of outstanding short-term debt under the company’s money-pool borrowing arrangement with Duke Energy Corp. and for general company purposes.

The sales of the 2033 notes and 2053 notes are expected to run concurrently but are not conditioned upon each other.

Raleigh, N.C.-based Duke Energy Progress provides utility services. The company is an indirect wholly owned subsidiary of Duke Energy Corp.

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