Bank of China contributes $120 million USD to a $800 million USD syndicated term loan to Duke Energy Florida for storm costs, under-collected fuel, and general company purposes

Project narrative

On October 21, 2022, a syndicate of six banks — including the New York Branch of the Bank of China (BOC) — entered into a $800,000,000.00 USD syndicated term loan credit agreement with Duke Energy Florida, Inc. — a Florida-incorporated and based public electricity utility wholly-owned subsidiary of Progress Energy, Inc., public utility holding company and wholly-owned by Duke Energy Corporation, a Delaware-incorporated American electric power holding and utility company focused in the Southeast and Midwest of the United States headquartered in Charlotte, North Carolina and listed on the New York Stock Exchange — for storm costs, under-collected fuel, and general company purposes. This loan carried a maturity period of 1.5 years and a final maturity date of April 24, 2024 and a variable interest rate based on Term SOFR (SOFR plus 0.10%) plus a margin of 0.75% or an alternate base rate (the highest of Truist's prime rate, the Federal Funds Rate plus 0.50%, or one-month Adjusted Term SOFR) with interest payable on the last day of each interest period for SOFR loans and payable quarterly for base rate loans. Overdue principal or interest on SOFR loans would bear interest based on Term SOFR plus the 0.75% margin plus 1%. The proceeds were to be used by the borrower for storm costs, under-collected fuel, and general company purposes. The term loan was wholly drawn down upon closing of the agreement. The New York Branch of BOC contributed $120,000,000 USD. In addition to BOC, the following lenders contributed the respective amounts: Truist Bank ($200,000,000 USD), Mizuho Bank, Ltd. ($140,000,000 USD), TD Bank, N.A. ($140,000,000 USD), PNC Bank, National Association ($120,000,000 USD), and Regions Bank ($80,000,000 USD). Truist Bank served as administrative agent. Truist Securities, Inc., Mizuho Bank, and TD Bank served joint lead arrangers. Truist Securities served as sole bookrunner.