DUKE ENERGY ANNOUNCES INFORMATION REGARDING THE REMARKETING OF THE DUKE CAPITAL CORPORATION 5.87 PERCENT SENIOR NOTES DUE 2006
CHARLOTTE, N.C. -- Duke Energy announced today on behalf of its subsidiary, Duke Capital Corporation, the basis for resetting the interest rate on the Duke Capital 5.87 percent Senior Notes due 2006 (“Senior Notes”) underlying Duke Energy Corporate Units, with such new interest rate to be effective on and after Feb. 18, 2004 (upon a successful remarketing), in connection with the proposed remarketing of the Senior Notes. This rate resetting is pursuant to the contractual requirements of the Senior Notes.
The securities affected by this announcement are as follows:
· Duke Capital 5.87 percent Senior Notes due 2006 (CUSIP No. 26439R205)
· Corporate Units issued by Duke Energy (CUSIP No. 264399585).
The reset rate on the Senior Notes, effective on and after Feb. 18, 2004 (upon a successful remarketing), will be equal to the sum of (x) the reset spread and (y) the rate of interest on the selected benchmark U.S. Treasury security (CUSIP No. 912828BX7; maturity 1/31/06), each determined on Feb. 12, 2004. The reset spread will be the appropriate spread so that the reset rate will be the interest rate that the Senior Notes should bear in order for the Senior Notes to have an approximate aggregate market value of 100.5 percent of the purchase price of a specified portfolio of U.S. Treasury securities. As of the date hereof, it is estimated that the reset spread will be approximately 120 basis points (1.20 percent); the actual reset spread will be determined on
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