Filed pursuant to Rule 433
August 9, 2021
Relating to
Preliminary Prospectus Supplement dated August 9, 2021
to
Prospectus dated September 23, 2019
Registration Statement No. 333-233896-02
Duke Energy Progress, LLC
$650,000,000 First Mortgage Bonds, 2.00% Series due 2031
$450,000,000 First Mortgage Bonds, 2.90% Series due 2051
Pricing Term Sheet
| Issuer: | Duke Energy Progress, LLC (the “Issuer”) |
| Trade Date: | August 9, 2021 |
| Settlement Date: | August 12, 2021 (T+3) |
| Expected Ratings (Moody’s/S&P):* | Aa3 (stable)/A (stable) |
| Security Description: | First Mortgage Bonds, 2.00% Series due 2031 (the “2031 Bonds”) | First Mortgage Bonds, 2.90% Series due 2051 (the “2051 Bonds”) |
| Principal Amount: | $650,000,000 | $450,000,000 |
| Interest Payment Dates: | February 15 and August 15 of each year, beginning on February 15, 2022 | February 15 and August 15 of each year, beginning on February 15, 2022 |
| Maturity Date: | August 15, 2031 | August 15, 2051 |
| Price to the Public: | 99.829% of the principal amount per 2031 Bond, plus accrued interest, if any, from August 12, 2021 | 99.820% of the principal amount per 2051 Bond, plus accrued interest, if any, from August 12, 2021 |
| Coupon: | 2.00% | 2.90% |
| Benchmark Treasury: | 1.625% due May 15, 2031 | 1.875% due February 15, 2051 |
| Benchmark Treasury Yield: | 1.319% | 1.979% |
| Spread to Benchmark Treasury: | +70 bps | +93 bps |
| Yield to Maturity: | 2.019% | 2.909% |
| Redemption Provisions: | At any time before May 15, 2031 (which is the date that is three months prior to the maturity date of the 2031 Bonds (the “2031 Par Call Date”)), the Issuer will have the right to redeem the 2031 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 2031 Bonds being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2031 Bonds being redeemed that would be due if the 2031 Bonds matured on the 2031 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 plus 15 basis points, plus, in either case, accrued and unpaid interest on the principal amount of the 2031 Bonds being redeemed to, but excluding, such redemption date. At any time on or after the 2031 Par Call Date, the Issuer will have the right to redeem the 2031 Bonds, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the 2031 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2031 Bonds being redeemed to, but excluding, such redemption date. | At any time before February 15, 2051 (which is the date that is six months prior to the maturity date of the 2051 Bonds (the “2051 Par Call Date”)), the Issuer will have the right to redeem the 2051 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 2051 Bonds being redeemed and (2) the sum of the present values of the remaining scheduled payments of principal and interest on the 2051 Bonds being redeemed that would be due if the 2051 Bonds matured on the 2051 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 plus 15 basis points, plus, in either case, accrued and unpaid interest on the principal amount of the 2051 Bonds being redeemed to, but excluding, such redemption date. At any time on or after the 2051 Par Call Date, the Issuer will have the right to redeem the 2051 Bonds, in whole or in part and from time to time, at a redemption price equal to 100% of the principal amount of the 2051 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2051 Bonds being redeemed to, but excluding, such redemption date. |
| CUSIP / ISIN: | 26442U AL8/US26442UAL89 | 26442U AM6/US26442UAM62 |
| Joint Book-Running Managers: | Citigroup Global Markets Inc. MUFG Securities Americas Inc. TD Securities (USA) LLC U.S. Bancorp Investments, Inc.
BNP Paribas Securities Corp. Goldman Sachs & Co. LLC Guggenheim Securities, LLC Truist Securities, Inc.
Wells Fargo Securities, LLC | |
| Co-Managers: | Loop Capital Markets LLC Regions Securities LLC BMO Capital Markets Corp. Academy Securities, Inc. Multi-Bank Securities, Inc. R. Seelaus & Co., 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 Citigroup Global Markets Inc. toll-free at (800) 831-9146, MUFG Securities Americas Inc. toll-free at (877) 649-6848, TD Securities (USA) LLC toll-free at (855) 495-9846 and U.S. Bancorp Investments, Inc. toll-free at (877) 558-2607.
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