Summary
Duke Energy Corporation (DUK) filed an 8-K report on October 1, 2008, detailing a significant debt issuance. On September 30, 2008, the company and its wholly-owned subsidiaries collectively borrowed approximately $1 billion under their Amended and Restated Credit Agreement. This action was taken in the context of the broader financial market conditions of late 2008, suggesting a proactive approach to managing liquidity and operational funding. The borrowed funds were distributed among Duke Energy Corporation and several of its key operating subsidiaries, including Duke Energy Carolinas, Duke Energy Ohio, Duke Energy Indiana, and Duke Energy Kentucky. The loans are structured as revolving credit loans with interest tied to the Base Rate, and have varying maturity dates, with most due in September 2009 and the corporate loan due in June 2012. The total available credit facility remains substantial at $3.2 billion, indicating significant borrowing capacity beyond the current drawdown.
Key Highlights
- 1Duke Energy and its subsidiaries drew approximately $1 billion from their $3.2 billion Amended and Restated Credit Agreement on September 30, 2008.
- 2The borrowings were made under a credit facility with a commitment expiration date of June 28, 2012.
- 3The loans are characterized as Revolving Credit Loans with interest based on the Base Rate.
- 4The majority of the borrowed funds are due for repayment on September 30, 2009, with Duke Energy Corporation's portion due on June 28, 2012.
- 5The total amount borrowed was $997,812,500, distributed across the parent company and several key subsidiaries.
- 6This filing indicates proactive liquidity management during a period of significant financial market stress.
- 7A press release dated September 30, 2008, announcing this transaction, is filed as an exhibit.