Duke Energy 2011 Annual Report Download - page 84

PART II
October 2031. Prior to the conversion, the bonds were held by Duke
Energy Carolinas as treasury bonds. In connection with the
conversion, the tax-exempt bonds were secured by a series of Duke
Energy Carolinas’ first mortgage bonds.
In September 2010, Duke Energy Carolinas converted $100
million of tax-exempt variable-rate demand bonds, to tax-exempt term
bonds, which carry a fixed interest rate of 4.625% and mature
November 1, 2040. In connection with the conversion, the
tax-exempt bonds were secured by a series of Duke Energy Carolinas’
first mortgage bonds.
In September 2010, Duke Energy Indiana refunded $70 million
of tax-exempt auction rate bonds through the issuance of $70 million
principal amount of tax-exempt term bonds, of which $60 million
carry a fixed interest rate of 3.375% and mature March 1, 2019,
and $10 million carry a fixed interest rate of 3.75% and mature
April 1, 2022. In connection with the conversion, the tax-exempt
bonds were secured by a series of Duke Energy Indiana’s first
mortgage bonds.
In July 2010, Duke Energy Indiana issued $500 million
principal amount of 3.75% first mortgage bonds due July 15, 2020.
Proceeds from the issuance were used to repay $123 million of
borrowings under the Master Credit Facility, to fund Duke Energy
Indiana’s ongoing capital expenditures and for general corporate
purposes.
In July 2010, International Energy issued $281 million
principal amount in Brazil, which carries an interest rate of 8.59%
plus IGP-M (Brazil’s monthly inflation index) non-convertible
debentures due July 2015. Proceeds of the issuance were used to
refinance Brazil debt related to DEIGP and for future debt maturities
in Brazil.
In June 2010, Duke Energy Carolinas issued $450 million
principal amount of 4.30% first mortgage bonds due June 15,
2020. Proceeds from the issuance were used to fund Duke Energy
Carolinas’ ongoing capital expenditures and for general corporate
purposes.
In May 2010, Green Frontier Wind Power, LLC, a subsidiary of
DEGS, an indirect wholly-owned subsidiary of Duke Energy, entered
into a long-term loan agreement for $325 million principal amount
maturing in 2025. The collateral for this loan is a group of five wind
farms located in Wyoming, Colorado and Pennsylvania. The initial
interest rate on the notes is the six month adjusted LIBOR plus an
applicable margin. In connection with this debt issuance, DEGS
entered into an interest rate swap to convert the substantial majority
of the loan interest payments from a variable rate to a fixed rate of
approximately 3.4% plus the applicable margin, which was 2.5% as
of December 30, 2011. Proceeds from the issuance were used to
help fund the existing wind portfolio.
In March 2010, Duke Energy issued $450 million principal
amount of 3.35% senior notes due April 1, 2015. Proceeds from the
issuance were used to repay $274 million of borrowings under the
master credit facility and for general corporate purposes.
Significant Notes Payable and Long-Term Debt Activities —
2009.
In December 2009, Duke Energy Ohio issued $250 million
principal amount of first mortgage bonds, which carry a fixed interest
rate of 2.10% and mature June 15, 2013. Proceeds from this
issuance, together with cash on hand, were used to repay Duke
Energy Ohio’s borrowing under Duke Energy’s master credit facility. In
conjunction with this debt issuance, Duke Energy Ohio entered into
an interest rate swap agreement that converted interest on this debt
issuance from the fixed coupon rate to a variable rate. The initial
variable rate was set at 0.31%.
In November 2009, Duke Energy Carolinas issued $750
million principal amount of first mortgage bonds, which carry a fixed
interest rate of 5.30% and mature February 15, 2040. Proceeds
from this issuance were used to fund capital expenditures and
general corporate purposes, including the repayment at maturity of
$500 million of senior notes and first mortgage bonds in the first half
of 2010.
In October 2009, Duke Energy Indiana refunded $50 million of
tax-exempt variable-rate demand bonds through the issuance of $50
million principal amount of tax-exempt term bonds, which carry a
fixed interest rate of 4.95% and mature October 1, 2040. The
tax-exempt bonds are secured by a series of Duke Energy Indiana’s
first mortgage bonds.
In September 2009, Duke Energy Ohio and Duke Energy
Indiana repaid and immediately re-borrowed $279 million and $123
million, respectively, under Duke Energy’s master credit facility.
In September 2009, Duke Energy Carolinas converted $77
million of tax-exempt variable-rate demand bonds to tax-exempt term
bonds, which carry a fixed interest rate of 3.60% and mature
February 1, 2017. In connection with the conversion, the tax-exempt
bonds were secured by a series of Duke Energy Carolinas’ first
mortgage bonds.
In September 2009, Duke Energy Kentucky issued $100
million of senior debentures, which carry a fixed interest rate of
4.65% and mature October 1, 2019. Proceeds from the issuance
were used to repay Duke Energy Kentucky’s borrowings under Duke
Energy’s master credit facility, to replenish cash used to repay $20
million principal amount of debt due September 15, 2009 and for
general corporate purposes.
In August 2009, Duke Energy issued $1 billion principal
amount of senior notes, of which $500 million carry a fixed interest
rate of 3.95% and mature September 15, 2014 and $500 million
carry a fixed interest rate of 5.05% and mature September 15,
2019. Proceeds from the issuance were used to redeem commercial
paper, to fund capital expenditures in Duke Energy’s unregulated
businesses in the U.S. and for general corporate purposes.
In June 2009, Duke Energy Indiana refunded $55 million of
tax-exempt variable-rate demand bonds through the issuance of $55
million principal amount of tax-exempt term bonds due August 1,
2039, which carry a fixed interest rate of 6.00% and are secured by
a series of Duke Energy Indiana’s first mortgage bonds. The refunded
bonds were redeemed July 1, 2009.
In March 2009, Duke Energy Ohio issued $450 million
principal amount of first mortgage bonds, which carry a fixed interest
rate of 5.45% and mature April 1, 2019. Proceeds from this
issuance were used to repay short-term notes and for general
corporate purposes, including funding capital expenditures.
In March 2009, Duke Energy Indiana issued $450 million
principal amount of first mortgage bonds, which carry a fixed interest
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