Duke Energy Signs $6 Billion Credit Agreement
November 28, 2011
CHARLOTTE, NC – November 28, 2011 – Duke Energy 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.
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.
The combined company is expected to have more than 7.1 million electric customers in six states (North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky) and the largest regulated nuclear fleet in the country.
About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 12 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com/.
About Progress Energy
Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company’s website at http://www.progress-energy.com/.
