Filed pursuant to Rule 433
March 3, 2014
Relating to
Preliminary Prospectus Supplement dated March 3, 2014 to
Prospectus dated September 30, 2013
Registration Statement No. 333-191462-01
Duke Energy Progress, Inc.
$250,000,000 First Mortgage Bonds,
Floating Rate Series, due 2017
$400,000,000 First Mortgage Bonds,
4.375% Series due 2044
Pricing Term Sheet
Issuer: | Duke Energy Progress, Inc. |
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Trade Date: | March 3, 2014 |
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Settlement Date: | March 6, 2014 (T+3) |
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Ratings (Moody’s/S&P/Fitch)*: | Aa2 / A / A+ |
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Security Description: | First Mortgage Bonds, Floating Rate Series, due 2017 (the “2017 Mortgage Bonds”) |
| First Mortgage Bonds, 4.375% Series due 2044 (the “2044 Mortgage Bonds”) |
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Principal Amount: | $250,000,000 |
| $400,000,000 |
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Interest Payment Dates: | March 6, June 6, September 6 and December 6 of each year, beginning on June 6, 2014 |
| March 30 and September 30 of each year, beginning on September 30, 2014 |
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Maturity Date: | March 6, 2017 |
| March 30, 2044 |
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Benchmark Treasury: | N/A |
| 3.75% due November 15, 2043 |
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Benchmark Treasury Yield: | N/A |
| 3.556 % |
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Spread to Benchmark Treasury: | N/A |
| + 82 bps |
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Yield to Maturity: | N/A |
| 4.376% |
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Coupon: | Floating Rate — reset quarterly based on three-month LIBOR plus 20 bps |
| 4.375% |
Price to Public: | 100.00% per 2017 Mortgage Bond, plus accrued interest, if any, from March 6, 2014 |
| 99.980% per 2044 Mortgage Bond, plus accrued interest, if any, from March 6, 2014 |
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Redemption Provisions: | The 2017 Mortgage Bonds may not be redeemed prior to their maturity. |
| At any time before six months prior to maturity, redeemable at the Treasury Rate + 15 bps. At any time on or after six months prior to maturity, redeemable at par. |
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CUSIP / ISIN: | 26442R AA9 / US26442RAA95 |
| 26442R AB7 / US26442RAB78 |
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Joint Book-Running Managers: | Credit Suisse Securities (USA) LLC Merrill Lynch, Pierce, Fenner & Smith Incorporated Mitsubishi UFJ Securities (USA), Inc. Morgan Stanley & Co. LLC SunTrust Robinson Humphrey, Inc. | ||
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Senior Co-Manager: | BNY Mellon Capital Markets, LLC | ||
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Co-Managers: | Fifth Third Securities, Inc. KeyBanc Capital Markets Inc. TD Securities (USA) LLC U.S. Bancorp Investments, Inc. | ||
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Junior Co-Managers: | Drexel Hamilton, LLC Loop Capital Markets LLC Mischler Financial Group, Inc. Samuel A. Ramirez & Company, Inc. | ||
*Security ratings are not recommendations to buy, sell or hold securities. The ratings are subject to change or withdrawal at any time by the respective credit rating agencies.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Credit Suisse Securities (USA) LLC toll free at 1-800-221-1037, Merrill Lynch, Pierce, Fenner & Smith Incorporated toll-free at (800) 294-1322, Mitsubishi UFJ Securities (USA), Inc. toll-free at (877) 649-6848, Morgan Stanley & Co. LLC toll-free at (866) 718-1649 or SunTrust Robinson Humphrey, Inc. toll-free at (800) 685-4786.
