Duke Energy 2015 Annual Report Download - page 163

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PART II
DUKE ENERGY CORPORATION • DUKE ENERGY CAROLINAS, LLC • PROGRESS ENERGY, INC. •
DUKE ENERGY PROGRESS, LLC • DUKE ENERGY FLORIDA, LLC • DUKE ENERGY OHIO, INC. • DUKE ENERGY INDIANA, INC.
Combined Notes to Consolidated Financial Statements – (Continued)
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
In January 2016, Duke Energy Kentucky issued $95 million of unsecured debentures, of which $45 million carry a fixed interest rate of 3.42 percent and mature
January 15, 2026 and $50 million carry a fixed interest rate of 4.45 percent and mature January 15, 2046. Proceeds will primarily be used to refinance existing debt,
including money pool borrowings, capital expenditures and for general corporate purposes.
The following tables summarize significant debt issuances (in millions).
Year Ended December 31, 2015
Issuance Date Maturity Date Interest Rate
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Carolinas
Duke
Energy
Progress
Unsecured Debt
November 2015(a)(b) April 2024 3.750% $ 400 $ 400 $ — $ —
November 2015(a)(b) December 2045 4.800% 600 600 — —
First Mortgage Bonds
March 2015(c) June 2045 3.750% 500 — 500 —
August 2015(a)(d) August 2025 3.250% 500 — — 500
August 2015(a)(d) August 2045 4.200% 700 — — 700
Total issuances $ 2,700 $ 1,000 $ 500 $ 1,200
(a) Proceeds were used to repay short-term money pool and commercial paper borrowing issued to fund a portion of the NCEMPA acquisition, see Note 2 for further information.
(b) Proceeds were used to refinance at maturity $300 million of unsecured notes at Progress Energy due January 2016.
(c) Proceeds were used to redeem at maturity $500 million of first mortgage bonds due October 2015.
(d) Proceeds were used to refinance at maturity $400 million of first mortgage bonds due December 2015.
Year Ended December 31, 2014
Issuance Date Maturity Date Interest Rate
Duke
Energy
Duke
Energy
(Parent)
Duke
Energy
Progress
Duke
Energy
Florida
Unsecured Debt
April 2014(a) April 2024 3.750 % $ 600 $ 600 $ — $ —
April 2014(a)(b) April 2017 0.613 % 400 400 — —
June 2014(c) May 2019 11.970 % 108 — — —
June 2014(c) May 2021 13.680 % 110 — — —
Secured Debt
March 2014(d) March 2017 0.863 % 225 — — 225
July 2014(e) July 2036 5.340 % 129 — — —
First Mortgage Bonds
March 2014(f) March 2044 4.375 % 400 — 400 —
March 2014(f)(g) March 2017 0.435 % 250 — 250 —
November 2014(h) December 2044 4.150 % 500 — 500 —
November 2014(g)(h) November 2017 0.432 % 200 — 200 —
Total issuances $ 2,922 $ 1,000 $ 1,350 $ 225
(a) Proceeds were used to redeem $402 million of tax-exempt bonds at Duke Energy Ohio, the repayment of outstanding commercial paper and for general corporate purposes. See Note 13 for additional information related to the
redemption of Duke Energy Ohio’s tax-exempt bonds.
(b) The debt is floating rate based on three-month London Interbank Offered Rate (LIBOR) plus a fixed credit spread of 38 basis points.
(c) Proceeds were used to repay $196 million of debt for International Energy and for general corporate purposes. The interest rates include country specific risk premiums.
(d) Relates to the securitization of accounts receivable at a subsidiary of Duke Energy Florida. Proceeds were used to repay short-term borrowings under the intercompany money pool borrowing arrangement and for general
corporate purposes. See Note 17 for further details.
(e) Proceeds were used to fund a portion of Duke Energy’s prior investment in the existing Wind Star renewables portfolio.
(f) Proceeds were used to repay short-term borrowings under the intercompany money pool borrowing arrangement and for general corporate purposes.
(g) The debt is floating rate based on three-month LIBOR plus a fixed credit spread of 20 basis points.
(h) Proceeds were used to redeem $450 million of tax-exempt bonds, repay short-term borrowings under the intercompany money pool borrowing arrangement and for general corporate purposes.