Published on 11/7/2022 in the Prospect News Investment Grade Daily.
New Issue: Duke Energy Florida sells $500 million 5.95% 30-year bonds at 167 bps over Treasuries
By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Nov. 7 – Duke Energy Florida, LLC sold $500 million of 5.95% 30-year first mortgage bonds on Monday at 99.438 to yield 5.996%, according to an FWP filing with the Securities and Exchange Commission.
The bonds (A1/A) priced with a spread of 167 basis points over Treasuries. A market source saw the notes coming in the 200 bps area.
Barclays, Mizuho Securities USA LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC are leading the sale. They are joined by other joint bookrunners BNP Paribas Securities Corp., Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc.
Proceeds will be used to pay down a portion of intercompany short-term debt under the money-pool borrowing arrangements with the issuer’s parent company, and for general corporate purposes.
The public utility is based in St. Petersburg, Fla., and is a subsidiary of Duke Energy Corp.
| Issuer: | Duke Energy Florida, LLC
|
| Amount: | $500 million
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| Issue: | First mortgage bonds
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| Maturity: | Nov. 15, 2052
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| Bookrunners: | Barclays, Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, BNP Paribas Securities Corp., Santander Investment Securities Inc. and SMBC Nikko Securities America, Inc.
|
| Co-managers: | Regions Securities LLC, Cabrera Capital Markets LLC, Great Pacific Securities, Mischler Financial Group, Inc. and Multi-Bank Securities, Inc.
|
| Trustee: | Bank of New York Mellon
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| Counsel to issuer: | In-house counsel and Hunton Andrews Kurth LLP
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| Counsel to underwriters: | Sidley Austin LLP
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| Coupon: | 5.95%
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| Price: | 99.438
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| Yield: | 5.996%
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| Spread: | Treasuries plus 167 bps
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| Call feature: | Make-whole call before May 15, 2052 at Treasuries plus 30 bps; thereafter at par
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| Trade date: | Nov. 7
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| Settlement date: | Nov. 10
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| Ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
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| Talk: | Treasuries plus 200 bps area
|
| Cusip: | 26444HAN1
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