This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Duke Energy Signs $6 Billion Credit Agreement

CHARLOTTE, N.C., Nov. 28, 2011 /PRNewswire/ -- Duke Energy (NYSE: DUK) has entered into a new $6 billion, five-year credit agreement with 30 financial institutions. The company has immediate access to $4 billion under the credit agreement and $2 billion becomes available following the successful closing of Duke Energy's proposed merger with Progress Energy.

(Logo:   http://photos.prnewswire.com/prnh/20040414/DUKEENERGYLOGO )

The credit agreement supports the company's commercial paper program and provides a valuable source of liquidity. The agreement replaces Duke Energy's existing $3.14 billion credit facility, which was set to expire in June 2012, and three Progress Energy facilities totaling approximately $2 billion, which expire in 2012 and 2013.

"We are very pleased with this new agreement, as well as the strength and diversity of the banks that are participating," said Stephen G. De May, Duke Energy's senior vice president of investor relations and treasurer. "This credit agreement will be a significant source of our liquidity for many years to come and adds to the financial strength and flexibility of the company's balance sheet."

Wells Fargo, National Association, served as Administrative Agent for the credit agreement and Bank of America, N.A, and the Royal Bank of Scotland, PLC, served as Co-Syndication Agents. The following served as Co-Documentation Agents: Bank of China, New York Branch; Barclays Bank, PLC; Citibank, N.A.; Credit Suisse AG, Cayman Islands Branch; Industrial and Commercial Bank of China Limited, New York Branch; JP Morgan Chase Bank, N.A.; and UBS Securities LLC.

Forty-nine percent of the total agreement is from banks based in North America, 34 percent is from banks based in Europe and 17 percent is from banks based in Asia.

The Bank of China and the Industrial and Commercial Bank of China, the largest bank in the world, and China Merchants Bank will collectively provide $676 million, or 11 percent of the credit agreement. This is the highest level of participation Chinese banks have ever had in a U.S. electric utility's credit facility.

When completed, the Duke Energy/Progress Energy merger will create the nation's largest electric utility, as measured by enterprise value, market capitalization, generation assets, customers and numerous other criteria.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,074.27 -5.87 -0.03%
S&P 500 2,119.04 +1.35 0.06%
NASDAQ 5,086.6590 -5.4260 -0.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs