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Duke Energy Ohio, Inc. – ‘FWP’ on 1/3/19 re: Duke Energy Ohio, Inc.

On:  Thursday, 1/3/19, at 5:07pm ET   ·   Accession #:  1104659-19-539   ·   File #:  333-213765-02

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 1/03/19  Duke Energy Ohio, Inc.            FWP                    1:45K  Duke Energy Ohio, Inc.            Merrill Corp-MD/FA

Free-Writing Prospectus   —   Rule 163/433
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: FWP         Free-Writing Prospectus                             HTML     31K 


This is an HTML Document rendered as filed.  [ Alternative Formats ]



 

Filed pursuant to Rule 433

January 3, 2019

Relating to

Preliminary Prospectus Supplement dated January 3, 2019 to

Prospectus dated January 26, 2017

Registration Statement No. 333-213765-02

 

Duke Energy Ohio, Inc.
$400,000,000 First Mortgage Bonds, 3.65% Series, Due February 1, 2029

$400,000,000 First Mortgage Bonds, 4.30% Series, Due February 1, 2049

 

Pricing Term Sheet

 

Issuer:

 

Duke Energy Ohio, Inc.

 

 

 

 

 

 

 

Settlement Date:

 

January 8, 2019 (T+3)

 

 

 

 

 

 

 

Ratings (Moody’s/S&P)*:

 

A2 (stable outlook) / A (stable outlook)

 

 

 

 

 

 

 

Security Description:

 

First Mortgage Bonds, 3.65% Series due February 1, 2029 (the “2029 Bonds”)

 

First Mortgage Bonds, 4.30% Series due February 1, 2049 (the “2049 Bonds”)

 

 

 

 

 

Principal Amount:

 

$400,000,000

 

$400,000,000

 

 

 

 

 

Interest Payment Dates:

 

February 1 and August 1, beginning on August 1, 2019

 

February 1 and August 1, beginning on August 1, 2019

 

 

 

 

 

Maturity Date:

 

February 1, 2029

 

February 1, 2049

 

 

 

 

 

Benchmark Treasury:

 

3.125% due November 15, 2028

 

3.000% due August 15, 2048

 

 

 

 

 

Benchmark Treasury Yield:

 

2.555%

 

2.911%

 

 

 

 

 

Spread to Benchmark Treasury:

 

+110 basis points

 

+140 basis points

 

 

 

 

 

Yield to Maturity:

 

3.655%

 

4.311%

 

 

 

 

 

Coupon:

 

3.65%

 

4.30%

 

 

 

 

 

Price to Public:

 

99.956% per 2029 Bond, plus accrued interest, if any, from January 8, 2019

 

99.812% per 2049 Bond, plus accrued interest, if any, from January 8, 2019

 

 

 

 

 

Redemption Provisions:

 

At any time before November 1, 2028 (which is the date that is three months prior to

 

At any time before August 1, 2048 (which is the date that is six months prior to maturity

 

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maturity of the 2029 Bonds (the “2029 Par Call Date”)), the 2029 Bonds will be redeemable in whole or in part, at the issuer’s option at any time, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2029 Bonds being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2029 Bonds being redeemed that would be due if the 2029 Bonds matured on the 2029 Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate plus 20 basis points, plus, in each case, accrued and unpaid interest on the principal amount of the 2029 Bonds being redeemed to, but excluding, the date of redemption.

 

At any time on or after the 2029 Par Call Date, the 2029 Bonds will be redeemable in whole or in part, at the issuer’s option at any time, at a redemption price equal to 100% of the principal amount of the 2029 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2029 Bonds being redeemed to, but excluding, the date of redemption.

 

of the 2049 Bonds (the “2049 Par Call Date”)), the 2049 Bonds will be redeemable in whole or in part, at the issuer’s option at any time, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2049 Bonds being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest on the 2049 Bonds being redeemed that would be due if the 2049 Bonds matured on the 2049 Par Call Date (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the treasury rate plus 25 basis points, plus, in each case, accrued and unpaid interest on the principal amount of the 2049 Bonds being redeemed to, but excluding, the date of redemption.

 

At any time on or after the 2049 Par Call Date, the 2049 Bonds will be redeemable in whole or in part, at the issuer’s option at any time, at a redemption price equal to 100% of the principal amount of the 2049 Bonds being redeemed plus accrued and unpaid interest on the principal amount of the 2049 Bonds being redeemed to, but excluding, the date of redemption.

 

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CUSIP / ISIN:

 

26442E AF7 / US26442EAF79

 

26442E AG5 / US26442EAG52

 

 

 

 

 

Joint Book-Running Managers:

 

Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Goldman Sachs & Co. LLC
U.S. Bancorp Investments, Inc.

 

 

 

Co-Managers:

 

BB&T Capital Markets, a division of BB&T Securities, LLC
BNY Mellon Capital Markets, LLC
The Williams Capital Group, L.P.

 

 

 

Junior Co-Managers:

 

CastleOak Securities, L.P.
Samuel A. Ramirez & Company, Inc.

 


*  Security ratings are not recommendations to buy, sell or hold securities. The ratings are subject to change or withdrawal at any time by the respective credit rating agencies.

 

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 Web site 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, Credit Suisse Securities (USA) LLC toll-free at (800) 221-1037, Goldman Sachs & Co. LLC toll-free at (866) 471-2526 or U.S. Bancorp Investments, Inc. toll-free at (877) 558-2607.

 

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Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘FWP’ Filing    Date    Other Filings
2/1/29
11/15/28
11/1/28
8/1/19
1/8/19
Filed on:1/3/19424B5
1/26/17POSASR
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Filing Submission 0001104659-19-000539   –   Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

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