Filed pursuant to Rule 433
August 6, 2018
Relating to
Preliminary Prospectus Supplement dated August 6, 2018
to
Prospectus dated January 26, 2017
Registration Statement No. 333-213765-01
Duke Energy Progress, LLC
$300,000,000 First Mortgage Bonds, 3.375% Series due 2023
$500,000,000 First Mortgage Bonds, 3.700% Series due 2028
Pricing Term Sheet
Issuer: | Duke Energy Progress, LLC | |
|
| |
Trade Date: | August 6, 2018 | |
|
| |
Settlement Date: | August 9, 2018 (T+3) | |
|
| |
Ratings (Moody’s/S&P)*: | Aa3 (stable)/A (stable) | |
|
| |
Security Description: | First Mortgage Bonds, 3.375% Series due 2023 (the “2023 Bonds”) | First Mortgage Bonds, 3.700% Series due 2028 (the “2028 Bonds”) |
|
|
|
Principal Amount: | $300,000,000 | $500,000,000 |
|
|
|
Interest Payment Dates: | March 1 and September 1 of each year, beginning on March 1, 2019 | March 1 and September 1 of each year, beginning on March 1, 2019 |
|
|
|
Maturity Date: | September 1, 2023 | September 1, 2028 |
|
|
|
Benchmark Treasury: | 2.750% due July 31, 2023 | 2.875% due May 15, 2028 |
|
|
|
Benchmark Treasury Yield: | 2.806% | 2.932% |
|
|
|
Spread to Benchmark Treasury: | + 57 bps | + 77 bps |
|
|
|
Yield to Maturity: | 3.376% | 3.702% |
|
|
|
Coupon: | 3.375% | 3.700% |
Price to Public: | 99.993% per 2023 Bond, plus accrued interest, if any, from August 9, 2018 | 99.981% per 2028 Bond, plus accrued interest, if any, from August 9, 2018 |
|
|
|
Redemption Provisions: | At any time before August 1, 2023 (which is the date that is one month prior to maturity of the 2023 Bonds (the “2023 Par Call Date”)), the issuer will have the right to redeem the 2023 Bonds, in whole or in part and from time to time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2023 Bonds being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2023 Bonds being redeemed that would be due if the 2023 Bonds matured on the 2023 Par Call Date (exclusive of interest accrued to the redemption date), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined herein) plus 10 basis points, plus, in either case, accrued and unpaid interest on the principal amount of the 2023 Bonds being redeemed to, but excluding, such redemption date.
At any time on or after the 2023 Par Call Date, the issuer will have the right to redeem the 2023 Bonds, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the 2023 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2023 | At any time before June 1, 2028 (which is the date that is three months prior to maturity of the 2028 Bonds (the “2028 Par Call Date”)), the issuer will have the right to redeem the 2028 Bonds, in whole or in part and from time to time, at a redemption price equal to the greater of (1) 100% of the principal amount of the 2028 Bonds being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2028 Bonds being redeemed that would be due if the 2028 Bonds matured on the 2028 Par Call Date (exclusive of interest accrued to the redemption date), discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined herein) plus 12.5 basis points, plus, in either case, accrued and unpaid interest on the principal amount of the 2028 Bonds being redeemed to, but excluding, such redemption date.
At any time on or after the 2028 Par Call Date, the issuer will have the right to redeem the 2028 Bonds, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the 2028 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2028 Bonds being redeemed to, but excluding, such redemption date. |
| Bonds being redeemed to, but excluding, such redemption date. |
|
|
|
|
CUSIP / ISIN: | 26442U AF1 / US26442UAF12 | 26442U AG9 / US26442UAG94 |
|
|
|
Joint Book-Running Managers: | J.P. Morgan Securities LLC Mizuho Securities USA LLC Scotia Capital (USA) Inc. SunTrust Robinson Humphrey, Inc. | |
|
| |
Senior Co-Manager: | Loop Capital Markets LLC | |
|
| |
Co-Managers: | Regions Securities LLC | |
|
| |
Junior Co-Managers: | Drexel Hamilton, LLC | |
* 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 Website 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 J.P. Morgan Securities LLC at (212) 834-4533 (collect), Mizuho Securities USA LLC toll free at (866) 271-7403, Scotia Capital (USA) Inc. toll free at (800) 372-3930 and SunTrust Robinson Humphrey, Inc. toll free at (800) 685-4786.
