Duke Energy Prices $1.75 Billion Equity Units Offering

The units are structured as corporate contracts requiring the future purchase of Duke Energy common stock. Each unit consists of an ownership interest in the company’s 4.85% remarketable senior notes due in 2032 and 2036. Investors will receive a 7.75% annual distribution rate, comprised of interest payments and contract adjustments. Holders are mandated to settle these purchase contracts no later than August 1, 2029, with a reference price set at $121.1827 per share.

The company intends to list these corporate units on the New York Stock Exchange. Proceeds from the offering will be directed toward redeeming $500 million in outstanding 3.25% junior subordinated debentures due in 2082, alongside paying down commercial paper and addressing general corporate needs. A syndicate of banks including Barclays, BofA Securities, and Citigroup is managing the offering. Underwriters have a 13-day window to purchase an additional 5 million units to cover potential over-allotments.