Duke Energy plans $1.75 billion equity units public offering

Duke Energy Corporation (NYSE: DUK) announced plans to sell 35 million equity units in a public offering, with each unit priced at $50, for an aggregate stated amount of $1.75 billion.

Each corporate unit will consist of a contract to purchase Duke Energy common stock in the future and two 1/40 undivided beneficial ownership interests in the company's remarketable senior notes, each with a principal amount of $1,000.

Duke Energy said it will grant underwriters an option to purchase an additional 5 million corporate units, representing an additional $250 million in aggregate stated amount, solely to cover over-allotments.

The company intends to apply to list the corporate units on the New York Stock Exchange, with trading expected to commence within 30 days of initial issuance, subject to listing approval.

Duke Energy said it plans to use net proceeds to redeem $500 million in aggregate principal of its 3.25% Junior Subordinated Debentures due 2082, repay a portion of outstanding commercial paper, and fund general corporate purposes.

Barclays, BofA Securities, Mizuho, Citigroup, Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, Truist Securities, and Wells Fargo Securities are serving as book-running managers for the offering.

The offering is being made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, according to a press release from the company.

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