Duke Energy Carolinas LLC on March 1 closed the sale of $1 billion of first and refunding mortgage bonds comprising $500 million of 3.05% series due 2023 and $500 million of 3.95% series due 2048.
Interest on the bonds is payable every March 15 and Sept. 15, starting Sept. 15, 2018. The bonds due in 2023 offer a spread of up to 47 basis points to the Treasury benchmark, while the bonds due in 2048 offer a spread of up to 82 basis points to the Treasury benchmark.
The company will use net proceeds to repay $300 million of first and refunding mortgage bonds, 5.10% series B due April 15, 2018, to pay down intercompany short-term debt under a money-pool borrowing arrangement with parent company Duke Energy Corp. and for general company purposes.
Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, MUFG Securities Americas Inc. and U.S. Bancorp Investments Inc. served as underwriters for the transaction.
