Duke Energy Corp. has completed the issuance of $1.75 billion worth of senior notes in three tranches, according to company filings.
The company sold $500 million of its 2.40% notes due Aug. 15, 2022; $750 million of its 3.15% notes due Aug. 15, 2027; and $500 million of its 3.95% notes due Aug. 15, 2047. Interest on the notes is payable Feb. 15 and Aug. 15 of each year, beginning Feb. 15, 2018.
Duke Energy will use the sale proceeds to repay $700 million of its 1.625% senior notes due Aug. 15, to repay outstanding commercial paper and for general corporate purposes.
At Aug. 1, the company had approximately $3.1 billion of commercial paper outstanding.
The spread to benchmark Treasury for the notes is as follows: 63 basis points for the 2022 notes, 93 basis points for the 2027 notes and 113 basis points for the 2047 notes. The notes were expected to be rated Baa1 by Moody's and BBB+ by both S&P Global Ratings and Fitch Ratings.
Barclays Capital Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Merrill Lynch Pierce Fenner & Smith Inc. and MUFG Securities Americas Inc. served as joint book-running managers for the transaction.
Loop Capital Markets LLC served as senior co-manager, while BB&T Capital Markets, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc. and The Williams Capital Group LP acted as co-managers. Academy Securities Inc., Blaylock Van LLC, CastleOak Securities L.P. and Samuel A. Ramirez & Company Inc. served as junior co-managers.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.