Duke Energy Completes Innovative $200 Million Regional Bank Loan Financing April 8, 2010
CHARLOTTE, N.C. -
Duke Energy (NYSE: DUK) and its wholly-owned subsidiary, Duke Energy Carolinas, have entered into a new four-year senior unsecured revolving credit facility with regional, community and minority-owned banks operating throughout the Duke Energy Carolinas service territory.
These banks committed a total of $200 million to the new credit facility, which will be used for general corporate purposes including capital expenditures.
“We are delighted with the success of this transaction and the strong support of our local banking community,” said Lynn Good, Duke Energy’s chief financial officer. “We’ve put in place a new form of long-term financing that provides incremental liquidity while diversifying our lender base. In doing so, we’ve established new banking relationships with regional and community banks that are also customers of ours.”
“Over the next three years, Duke Energy plans to invest up to $6 billion in energy infrastructure throughout our North Carolina and South Carolina territories to provide the affordable, reliable and clean energy our customers expect from us,” said Brett Carter, president of Duke Energy North Carolina. “Raising capital right here in the Carolinas makes perfect sense when you think about how much money we are investing toward the energy needs of this area.”
Eight banks committed to the transaction, including:
- BB&T (Administrative Agent and Co-Lead Arranger)
- Regions Bank (Co-Lead Arranger)
- First National Bank of Shelby
- First Tennessee Bank
- Mechanics and Farmers Bank
- North Carolina Bank and Trust
- Park Sterling Bank
- RBC Bank (USA)
President and CEO of North Carolina Bank and Trust, Robin Lyle, remarked: “Duke Energy has a large and influential presence in the Carolinas and as a growing bank in this region, North Carolina Bank and Trust is pleased to be partnering with the company on this transaction. We view this as a unique form of capital-raising for Duke Energy and an opportunity for local banks to diversify our loan portfolios through participation in a large corporate transaction.”
CFSD Group LLC served as advisor to Duke Energy in this transaction.
Duke Energy Carolinas owns nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides approximately 19,000 megawatts of electricity capacity to approximately 2.4 million customers in a 22,000-square-mile service area of North Carolina and South Carolina.
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 11 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com.
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