By Wendy Van Sickle
Columbus, Ohio, April 3 – Duke Energy Florida, LLC priced $173.42 million of floating-rate first mortgage bonds due April 15, 2074 (A1/A) at par on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The bonds will bear interest at compounded SOFR minus 35 basis points.
The bonds are redeemable in whole or in part starting April 15, 2054. The redemption price starts at 105 and annually drops by 50 bps until the bonds are redeemable at par on April 15, 2064.
The bonds are putable semiannually starting April 15, 2025 through April 15, 2035 and then on April 15 every second year through April 15, 2071.
Upon the occurrence of certain specific events, the bonds may be redeemed in full at the issuer’s option at 125 plus accrued interest. This may occur if all the company’s outstanding common stock is acquired by a governmental body or instrumentality or if substantially all of the company’s mortgage first-lien bondable property is released and the company holds sufficient money to redeem all the outstanding bonds at the applicable redemption prices plus accrued interest.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are listed as bookrunners.
Proceeds will be used to pay down a portion of the company’s accounts receivable securitization facility due on April 26, with about $325 million outstanding at a 6.48% annual interest rate. Proceeds will also be used for general company purposes, including funding capital expenditures for ongoing construction and capital maintenance.
Duke Energy Florida, based in St. Petersburg, Fla., is a regulated public utility and an indirect wholly owned subsidiary of Duke Energy Corp.
| Issuer: | Duke Energy Florida, LLC
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| Amount: | $173,421,000
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| Issue: | First mortgage bonds
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| Maturity: | April 15, 2074
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| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
|
| 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 underwriter: | Sidley Austin LLP
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| Coupon: | Compounded SOFR minus 35 bps
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| Price: | Par
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| Call options: | At 105 starting on April 15, 2053; redemption price steps down in increments of 50 bps annually on April 15, until a par call is reached starting on April 15, 2064; in full at 125 if all the company’s outstanding common stock is acquired by a governmental body or instrumentality or if substantially all of the company’s mortgage first-lien bondable property is released and the company holds sufficient money to redeem all the outstanding bonds
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| Put option: | Beginning on April 15, 2025, every April 15 and Oct. 15 after that through April 15, 2035 and subsequently on April 15 of every second year through April 15, 2071
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| Trade date: | April 3
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| Settlement date: | April 5
|
| Ratings: | Moody’s: A1
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| S&P: A
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| Distribution: | SEC registered
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| Cusip: | 26444HAS0
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