Duke Energy announces public offering of common stock in connection with its pending acquisition of Piedmont Natural Gas
By a News Reporter-Staff News Editor at Investment Weekly News -- Duke Energy Corporation (NYSE: DUK) ("Duke") announced that it has commenced a registered public offering of 9.25 million shares of its common stock in connection with a forward sale agreement (as discussed below). Barclays, BofA Merrill Lynch, Citigroup, J.P. Morgan and Wells Fargo Securities are acting as joint book-running managers of this offering.
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The expected net proceeds from the offering are to be used to finance a portion of the costs of Duke's pending acquisition of Piedmont Natural Gas Company, Inc. ("Piedmont"). In connection with the offering, Duke expects to grant the underwriters of the offering a 30-day option to purchase up to an additional 1.3875 million shares of Duke's common stock upon the same terms.
In connection with the offering, Duke expects to enter into a forward sale agreement with an affiliate of Barclays Capital Inc. (the "forward counterparty") under which Duke will agree to issue and sell to the forward counterparty (subject to Duke's right to cash settle or net share settle the forward sale agreement) 9.25 million shares of its common stock at the public offering price, less discounts and commissions, and subject to certain adjustments. If the underwriters exercise their option to purchase additional shares of Duke's common stock, Duke expects to enter into an additional forward sale agreement with the forward counterparty with respect to the additional shares.
Settlement of the forward sale agreement(s) will occur upon closing of the Piedmont acquisition, which is expected by the end of 2016, but may occur as late as June 30, 2017. Duke may, subject to certain conditions, elect cash settlement or net share settlement for all or a portion of its rights or obligations under the forward sale agreement(s).
The offering is being made pursuant to Duke's effective shelf registration statement filed with the Securities and Exchange Commission (the "SEC"). The preliminary prospectus supplement related to the offering will be available on the SEC's website at http://www.sec.gov. Copies of the prospectus supplement and the base prospectus relating to the offering may be obtained from: Barclays Capital Inc. by calling 1-888-603-5847, or by mail at Barclays Capital Inc. c/o Broadridge Financial Solutions, 1155 Long Island Ave.,
Edgewood, NY
11717, or by email at
Barclaysprospectus@broadridge.com; BofA Merrill Lynch, 222 Broadway,
New York, NY
10038, Attn: Prospectus Department, email
dg.prospectus_requests@baml.com;
Citigroup, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY
11717, telephone: (800) 831-9146;
J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY
11717, or by telephone at (866) 803-9204; Wells Fargo Securities, LLC Attention:
Equity Syndicate Department, 375 Park Avenue,
New York, New York
10152, or by calling (800) 326-5897 or e-mail
cmclientsupport@wellsfargo.com.
Keywords for this news article include: Oil & Gas, Natural Gas, Energy Companies, Investment and Finance, Duke Energy Corporation.
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