Filed pursuant to Rule 433
March 6, 2023
Relating to
Preliminary Prospectus Supplement dated March 6, 2023
to
Prospectus dated September 23, 2022
Registration Statement No. 333-267583-06
Duke Energy Progress, LLC
$500,000,000 First Mortgage Bonds, 5.25% Series due 2033
$500,000,000 First Mortgage Bonds, 5.35% Series due 2053
Pricing Term Sheet
| Issuer: | Duke Energy Progress, LLC (the “Issuer”) |
| Trade Date: | March 6, 2023 |
| Settlement Date: | March 9, 2023 (T+3) |
| Expected Ratings (Moody’s/S&P):* | Aa3/A (Stable/Stable) |
| Security Description: | First Mortgage Bonds, 5.25% Series due 2033 (the “2033 Mortgage Bonds”) | First Mortgage Bonds, 5.35% Series due 2053 (the “2053 Mortgage Bonds”) |
| Principal Amount: | $500,000,000 | $500,000,000 |
| Maturity Date: | March 15, 2033 | March 15, 2053 |
| Benchmark Treasury: | 3.500% due February 15, 2033 | 4.000% due November 15, 2052 |
| Benchmark Treasury Price: | 96-04+ | 101-18 |
| Benchmark Treasury Yield: | 3.973% | 3.910% |
| Spread to Benchmark Treasury: | +128 bps | +148 bps |
| Reoffer Yield: | 5.253% | 5.390% |
| Price to the Public: | 99.976% per 2033 Mortgage Bond, plus accrued interest, if any, from March 9, 2023 | 99.407% per 2053 Mortgage Bond, plus accrued interest, if any, from March 9, 2023 |
| Coupon: | 5.25% | 5.35% |
| Interest Payment Dates: | March 15 and September 15, beginning on September 15, 2023 | March 15 and September 15, beginning on September 15, 2023 |
Redemption Provisions/
Make-Whole Call: | Prior to December 15, 2032 (the date that is three months prior the maturity date of the 2033 Mortgage Bonds) (the “2033 Par Call Date”)), the Issuer may redeem the 2033 Mortgage Bonds at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2033 Mortgage Bonds matured on the 2033 Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate applicable to the 2033 Mortgage Bonds +20 bps less (b) interest accrued to the redemption date; and (2) 100% of the principal amount of the 2033 Mortgage Bonds to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after the 2033 Par Call Date, redeemable at par. | Prior to September 15, 2052 (the date that is six months prior to the maturity date of the 2053 Mortgage Bonds (the “2053 Par Call Date”)), the Issuer may redeem the 2053 Mortgage Bonds at its option, in whole or in part, at any time and from time to time, at a redemption price (expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (1)(a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the 2053 Mortgage Bonds matured on the 2053 Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate applicable to the 2053 Mortgage Bonds +25 bps less (b) interest accrued to the redemption date; and (2) 100% of the principal amount of the 2053 Mortgage Bonds to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. At any time on or after the 2053 Par Call Date, redeemable at par. |
| CUSIP / ISIN: | 26442U AQ7 / US26442UAQ76 | 26442U AR5 / US26442UAR59 |
| Joint Book-Running Managers: | Barclays Capital Inc. MUFG Securities Americas Inc.
PNC Capital Markets LLC RBC Capital Markets, LLC U.S. Bancorp Investments, Inc. BNP Paribas Securities Corp. Goldman Sachs & Co. LLC Wells Fargo Securities, LLC |
| Co-Managers: | Siebert Williams Shank & Co., LLC Academy Securities, Inc. Cabrera Capital Markets LLC Mischler Financial Group, Inc. |
* A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
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 Barclays Capital Inc. toll-free at (888) 603-5847, MUFG Securities Americas Inc. toll-free at (877) 649-6848, PNC Capital Markets LLC toll-free at (855) 881-0697, RBC Capital Markets, LLC toll-free at (866) 375-6829 and U.S. Bancorp Investments, Inc. toll-free at (877) 558-2607.
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