Filed pursuant to Rule 433
March 11, 2024
Relating to
Preliminary Prospectus Supplement dated March 11, 2024 to
Prospectus dated September 23, 2022
Registration Statement No. 333-267583-05
Duke Energy Ohio, Inc.
$425,000,000 First Mortgage Bonds, 5.55% Series, Due March 15, 2054
Pricing Term Sheet
| Issuer: | Duke Energy Ohio, Inc. (the “Issuer”) |
| Trade Date: | March 11, 2024 |
| Settlement Date: | March 14, 2024 (T+3) |
| Expected Ratings (Moody’s/S&P)*: | A2 (Stable) / A (Stable) |
| Security Description: | First Mortgage Bonds, 5.55% Series due March 15, 2054 (the “Mortgage Bonds”) |
| Principal Amount: | $425,000,000 |
| Interest Payment Dates: | March 15 and September 15, beginning on September 15, 2024 |
| Maturity Date: | March 15, 2054 |
| Benchmark Treasury: | 4.750% due November 15, 2053 |
| Benchmark Treasury Yield: | 4.268% |
| Spread to Benchmark Treasury: | +130 basis points |
| Yield to Maturity: | 5.568% |
| Coupon: | 5.55% |
| Price to the Public: | 99.739% per Mortgage Bond, plus accrued interest, if any, from March 14, 2024 |
| Redemption Provisions: | Prior to September 15, 2053 (the date that is six months prior to the maturity date of the Mortgage Bonds (the “Par Call Date”)), the Issuer may redeem the 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 Mortgage Bonds matured on the 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 Mortgage Bonds + 20 bps less (b) interest accrued to the redemption date; and (2) 100% of the principal amount of the Mortgage Bonds to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date. On or after the Par Call Date, the Issuer may redeem the Mortgage Bonds at its option, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the Mortgage Bonds to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. |
| CUSIP / ISIN: | 26442E AL4 / US26442EAL48 |
| Joint Book-Running Managers: | Citigroup Global Markets Inc.
MUFG Securities Americas Inc.
PNC Capital Markets LLC
SMBC Nikko Securities America, Inc.
U.S. Bancorp Investments, Inc. |
| Co-Managers: | Siebert Williams Shank & Co., LLC
Loop Capital Markets LLC
Scotia Capital (USA) Inc.
Mischler Financial Group, Inc. |
* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time. Each credit rating should be evaluated independently of any other credit rating.
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, PNC Capital Markets LLC toll-free at (855) 881-0697, SMBC Nikko Securities America, Inc. toll-free at (888) 868-6856 or U.S. Bancorp Investments, Inc. toll-free at (877) 558-2607.
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