Duke Energy 2012 Annual Report Download - page 175

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PART II
Combined Notes to Consolidated Financial Statements – (Continued)
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. • CAROLINA POWER & LIGHT COMPANY d/b/a PROGRESS ENERGY
CAROLINAS, INC. • FLORIDA POWER CORPORATION d/b/a PROGRESS ENERY FLORIDA, INC. • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
For the year ended December 31, 2011
Issuance
Date
Maturity
Date
Interest
Rate
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Progress
Energy
(Parent)
Progress
Energy
Carolinas
Progress
Energy
Florida
Unsecured Debt:
January 2011 January 2021 4.40
% $ — $ — $500
(a) $— $ —
August 2011 September 2021 3.55
%500
(b) —— ——
November 2011 November 2016 2.15
%500
(c) —— ——
First Mortgage Bonds:
May 2011 June 2021 3.90
%— 500
(d) ———
August 2011 September 2021 3.10
%— ———
300(e)
September 2011 August 2021 3.00
%— — —500
(f) —
December 2011 December 2016 1.75
%— 350
(g) —— —
December 2011 December 2041 4.25 % — 650
(g) —— —
Total Issuances $1,000 $1,500 $500 $500 $300
(a) Proceeds from the issuance, along with available cash on hand, were used to repay $700 million 7.10% senior unsecured notes due March 1, 2011.
(b) Proceeds from the issuance were used to repay a portion of commercial paper as it matured, to fund capital expenditures in Duke Energy’s unregulated businesses in the U.S. and for general corporate purposes.
(c) Proceeds from the issuance were used to fund capital expenditures in unregulated businesses in the U.S. and for general corporate purposes.
(d) Proceeds from the issuance were used to fund capital expenditures and for general corporate purposes.
(e) Proceeds from the issuance were used to repay a portion of outstanding short-term debt, of which $300 million was used to repay the July 15, 2011 maturity of 6.65% fi rst mortgage bonds.
(f) Proceeds from the issuance were used to repay outstanding short-term debt and the remainder was used for general corporate purposes, including construction expenditures.
(g) Proceeds from the issuances were used to repay $750 million 6.25% senior unsecured notes which matured January 15, 2012, with the remainder to fund capital expenditures and for general corporate purposes.
Current Maturities of Long-Term Debt
The following table shows the signifi cant components of Current
maturities of long-term debt on the Duke Energy Registrants’ respective
Consolidated Balance Sheets as of December 31, 2012. The amounts were
presented as Long-term Debt as of December 31, 2011, except for the secured
debt. The Duke Energy Registrants currently anticipate satisfying these
obligations with proceeds from additional borrowings, unless otherwise noted.
(in millions) Maturity Date Interest Rate December 31, 2012
Unsecured Debt:
Duke Energy (Parent) June 2013 5.650 % $ 250
Duke Energy Indiana September 2013 5.000 % 400
Secured Debt:
Duke Energy(a) March 2013 3.796 % 423
Duke Energy(b) June 2013 1.009 % 190
First Mortgage Bonds:
Duke Energy Carolinas November 2013 5.750 % 400
Progress Energy Carolinas September 2013 5.125 % 400
Progress Energy Florida March 2013 4.800 % 425
Duke Energy Ohio June 2013 2.100 % 250
Other 372
Current maturities of long-term debt $3,110
(a) Represents a construction loan related to a renewable project that will be converted to a term loan once construction in complete and requirements to convert are fulfi lled.
(b) Notes are fully offset with cash collateral, which is recorded in Other current assets in the Consolidated Balance Sheets as of December 31, 2012.
Other Debt Matters
In the fi rst quarter of 2012, Duke Energy completed the previously
announced sale of International Energy’s indirect 25% ownership interest in
Attiki Gas Supply, S.A (Attiki), a Greek corporation, to an existing equity owner
in a series of transactions that resulted in the full discharge of the related
debt obligation. No gain or loss was recognized on these transactions. As of
December 31, 2011, Duke Energy’s investment balance was $64 million and
the related debt obligation of $64 million was refl ected in Current maturities of
long-term debt on Duke Energy’s Consolidated Balance Sheets.
In September 2010, Duke Energy fi led a registration statement (Form S-3)
with the SEC. Under this Form S-3, which is uncapped, Duke Energy, Duke
Energy Carolinas, Duke Energy Ohio and Duke Energy Indiana may issue debt
and other securities in the future at amounts, prices and with terms to be
determined at the time of future offerings. The registration statement also allows
for the issuance of common stock by Duke Energy.
On March 1, 2012, the Progress Energy, Inc., as a well-known seasoned
issuer, Progress Energy Carolinas and Progress Energy Florida fi led a combined
shelf registration statement with the SEC, which became effective upon fi ling
with the SEC. The registration statement is effective for three years and does
not limit the amount or number of various securities that can be issued. On
July 3, 2012, the Progress Energy, Inc. deregistered its equity securities from
the registration statement in connection with the merger, but retained its ability
to issue senior debt securities and junior subordinated debentures under the