Summary
Duke Energy Corporation (DUK) filed an 8-K on September 17, 2018, to report on the consummation of the issuance and sale of $500,000,000 aggregate principal amount of its 5.625% Junior Subordinated Debentures due 2078. This offering was conducted under an underwriting agreement dated September 11, 2018, with several major financial institutions acting as underwriters. The debentures were issued pursuant to an indenture and a supplemental indenture executed on September 17, 2018. This issuance represents a significant capital raising event for Duke Energy. Investors should note that these are junior subordinated debentures, which carry a higher risk profile than senior debt but offer a fixed 5.625% interest rate maturing in 2078. The filing also includes supporting legal opinions regarding the validity and tax implications of these securities, which are incorporated by reference into the company's registration statement.
Key Highlights
- 1Duke Energy consummated the sale of $500 million in 5.625% Junior Subordinated Debentures due 2078.
- 2The issuance occurred on September 17, 2018.
- 3An underwriting agreement was in place with Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, and Wells Fargo Securities, LLC.
- 4The debentures were issued under a primary indenture dated June 3, 2008, and a Twentieth Supplemental Indenture dated September 17, 2018.
- 5Legal opinions regarding the validity and tax matters of the securities are included as exhibits.
- 6This filing is classified as an Other Event (Item 8.01).