Duke Energy Registers Common Stock, Various Debt Securities

TL;DR

**Duke Energy just registered a bunch of stock and debt, signaling potential future fundraising.**

AI Summary

Duke Energy Corporation filed an 8-K on January 5, 2024, to register various securities, including common stock, 5.625% Junior Subordinated Debentures due September 15, 2078, depositary shares, 3.10% senior notes due 2028, and 3.85% senior notes due 2034. This filing indicates Duke Energy's intent to potentially issue new debt or equity, which could impact the company's capital structure and future financing costs. For investors, this matters because new debt could increase leverage, while new equity could dilute existing shareholders, potentially affecting stock value.

Why It Matters

This filing signals Duke Energy's potential future capital-raising activities, which could affect its financial leverage and shareholder dilution, directly impacting the stock's valuation.

Risk Assessment

Risk Level: medium — The registration of various securities introduces uncertainty regarding future capital structure changes and potential dilution or increased debt burden.

Analyst Insight

Investors should monitor subsequent filings for actual issuance of these registered securities to assess potential impacts on dilution or leverage, and re-evaluate Duke Energy's capital structure.

Key Numbers

• 5.625% — Interest Rate (for Junior Subordinated Debentures due September 15, 2078)
• 3.10% — Interest Rate (for senior notes due 2028)
• 3.85% — Interest Rate (for senior notes due 2034)

Key Players & Entities

• Duke Energy Corporation (company) — the registrant filing the 8-K
• January 5, 2024 (date) — date of earliest event reported and filing date
• 5.625% (dollar_amount) — interest rate for Junior Subordinated Debentures
• September 15, 2078 (date) — maturity date for Junior Subordinated Debentures
• 3.10% (dollar_amount) — interest rate for senior notes due 2028
• 2028 (date) — maturity year for 3.10% senior notes
• 3.85% (dollar_amount) — interest rate for senior notes due 2034
• 2034 (date) — maturity year for 3.85% senior notes

Forward-Looking Statements

• Duke Energy will likely issue new debt or equity within the next 12-18 months to fund operations or investments. (Duke Energy Corporation) — medium confidence, target: 2025-07-05
• The company's debt-to-equity ratio may increase if a significant portion of the registered securities are debt instruments. (Duke Energy Corporation) — medium confidence, target: 2025-01-05

FAQ

Key Financial Figures

• $0.001 — Duke Energy Corporation Common Stock, $0.001 par value DUK New York Stock Exchan
• $550,000,000 — d to issue and sell to the Underwriters $550,000,000 aggregate principal amount of the Compa

Filing Documents

• tm2333823d5_8k.htm (8-K) — 39KB
• tm2333823d5_ex4-1.htm (EX-4.1) — 207KB
• tm2333823d5_ex5-1.htm (EX-5.1) — 22KB
• tm2333823d5_ex99-1.htm (EX-99.1) — 195KB
• tm2333823d5_8kimg005.jpg (GRAPHIC) — 6KB
• 0001104659-24-001699.txt ( ) — 788KB
• duk-20240105.xsd (EX-101.SCH) — 4KB
• duk-20240105_def.xml (EX-101.DEF) — 27KB
• duk-20240105_lab.xml (EX-101.LAB) — 40KB
• duk-20240105_pre.xml (EX-101.PRE) — 26KB
• tm2333823d5_8k_htm.xml (XML) — 8KB

01. Other Events

Item 8.01. Other Events. On January 5, 2024, Duke Energy Corporation (the "Company") consummated the issuance and sale of the securities described below pursuant to an underwriting agreement, dated January 2, 2024 (the "Underwriting Agreement"), with Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC, as representatives of the several underwriters named therein (the "Underwriters"), pursuant to which the Company agreed to issue and sell to the Underwriters $550,000,000 aggregate principal amount of the Company's 4.850% Senior Notes due 2027 and $550,000,000 aggregate principal amount of the Company's 4.850% Senior Notes due 2029 (collectively, the "Securities"). The Securities were sold to the Underwriters at discounts to their principal amounts. The Securities were issued pursuant to an Indenture, dated as of June 3, 2008 (the "Indenture"), by and between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), as amended and supplemented by various supplemental indentures thereto, including the Thirty-first Supplemental Indenture, dated as of January 5, 2024 (the "Supplemental Indenture"), between the Company and the Trustee. The disclosure in this Item 8.01 is qualified in its entirety by the provisions of the Indenture, the Supplemental Indenture, together with the forms of global notes evidencing the Securities included therein, which is filed as Exhibit 4.1 hereto, and the Underwriting Agreement, which is filed as Exhibit 99.1 hereto. Such exhibits are incorporated herein by reference. Also, in connection with the issuance and sale of the Securities, the Company is filing a legal opinion regarding the validity of the Securities as Exhibit 5.1 to this Form 8-K for the purpose of incorporating such opinion into the Company's Registration Statement on Form S-3, No. 333-267583.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. 4.1 Thirty-first Supplemental Indenture, dated as of January 5, 2024, to the Indenture, dated as of June 3, 2008, between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, and forms of global notes included therein 5.1 Opinion of Robert T. Lucas III regarding validity of the Securities 23.1 Consent of Robert T. Lucas III (included as part of Exhibit 5.1) 99.1 Underwriting Agreement, dated January 2, 2024, among the Company and Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC, as representatives of the several underwriters named therein 104 Cover Page Interactive Data file (the Cover Page Interactive Data file is embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DUKE ENERGY CORPORATION Date: January 5, 2024 By: /s/ Robert T. Lucas III Name: Robert T. Lucas III Title: Assistant Corporate Secretary

View Full Filing

View this 8-K filing on SEC EDGAR