Duke Energy Corporation (NYSE: DUK) announced it priced $1.3 billion in 3.000% convertible senior notes due 2029, increasing the offering size from the previously announced $1 billion. The company also granted initial purchasers an option to buy up to an additional $200 million of notes within 13 days of issuance.

The sale is expected to close March 12, 2026, subject to customary conditions. Duke Energy expects net proceeds of approximately $1.29 billion, or $1.48 billion if purchasers exercise their full option, after deducting discounts and expenses.

The company plans to use proceeds to repay $1.725 billion of outstanding 4.125% convertible senior notes maturing April 15, 2026, including cash amounts due upon conversion, and for general corporate purposes.

The new convertible notes will mature March 15, 2029, and bear 3.000% annual interest payable semiannually starting September 15, 2026. The notes will be convertible under certain conditions before December 15, 2028, and at holders' discretion afterward until maturity.

The initial conversion rate is 6.2277 shares per $1,000 principal amount, equivalent to a conversion price of approximately $160.57 per share. This represents a 22.50% premium over Duke Energy's closing stock price on March 9, 2026, on the New York Stock Exchange.

Duke Energy will settle conversions by paying cash up to the principal amount and may deliver cash, stock, or a combination for any excess conversion obligation. The company cannot redeem the notes before maturity but holders may require repurchase at 100% of principal plus accrued interest if certain fundamental changes occur.

The offering targets qualified institutional buyers under Rule 144A and is not registered under the Securities Act of 1933.