Bank of China (New York Branch) contributes $75 million USD to a $1 billion USD syndicated revolving credit facility in 2019 to Duke Energy Corporation for general corporate purposes

Project narrative

On June 14, 2017, a syndicate of eight banks — including the New York Branch of the Bank of China (BOC) — entered into a $1,000,000,000 syndicated revolving credit facility (RCF) agreement with 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 general corporate purposes. The RCF carried a maturity period of three years and a final maturity date of June 14, 2020 and an interest rate based on LIBOR or an alternate base rate (the highest of the Bank of Nova Scotia's prime rate, the Federal Funds rate plus 0.50%, or one-month LIBOR plus 1%) plus an applicable margin dependent on the borrower's senior unsecured long-term debt ratings, ranging from 82.5 basis points (bps) if A- or A3 or greater to 132.5 bps if less than or equal to BBB or Baa2 for LIBOR and 0.0 bps to 32.5 bps for the base rate. As the borrower's ratings were BBB+ and Baa1, the LIBOR margin was 92.5 bps, the base rate margin was 0.0 bps. There was a commitment fee of 12.5 bps. The proceeds were to be used by the borrower for general corporate purposes. The New York Branch of BOC contributed $75,000,000 USD, as captured by Record ID#108404. As of June 30, 2017, $270 million USD had been drawn under the RCF. As of December 31, 2017, $500 million USD had been drawn under the RCF. As of December 31, 2018, $500 million USD had been drawn under the RCF. Then, on May 15, 2019, a syndicate of eight banks — including the New York Branch of BOC — entered into a $1,000,000,000 USD syndicated RCF agreement with Duke Energy Corporation for refinancing and general corporate purposes. The RCF carried a maturity period of three years and a final maturity date of May 15, 2022 and an interest rate based on LIBOR or an alternate base rate (the highest of the Bank of Nova Scotia's prime rate, the Federal Funds rate plus 0.50%, or one-month LIBOR plus 1%) plus an applicable margin dependent on the borrower's senior unsecured long-term debt ratings, ranging from 82.5 basis points (bps) if A- or A3 or greater to 132.5 bps if less than or equal to BBB- or Baa3 for LIBOR and 0.0 bps to 32.5 bps for the base rate. As the borrower's ratings were BBB+ and Baa1, the LIBOR margin was 92.5 bps, the base rate margin was 0.0 bps. There was a commitment fee of 12.5 bps. The proceeds were to be used by the borrower for general corporate purposes and to refinance the existing 2017 $1 billion USD RCF by paying all existing interest and fees and refinancing the principal. The New York Branch of BOC contributed $75,000,000.00 USD as captured by Record ID#108423. In addition to BOC, the following lenders contributed the respective amounts: The Bank of Nova Scotia (Scotiabank) ($175,000,000.00 USD), PNC Bank, National Association ($175,000,000.00 USD), Sumitomo Mitsui Banking Corporation (SMBC) ($175,000,000.00 USD), TD Bank, N.A. ($175,000,000.00 USD), BNP Paribas S.A. ($75,000,000.00 USD), Santander Bank, N.A. ($75,000,000.00 USD), and U.S. Bank National Association ($75,000,000.00 USD). Scotiabank served as administrative agent. PNC Bank and SMBC served as co-syndication agents. The New York Branch of BOC, BNP Paribas, Santander Bank, and U.S. Bank served as co-documentation agents. Scotiabank, PNC Capital Markets LLC, SMBC, and TD Bank served as joint lead arrangers and joint bookrunners. As of December 31, 2019, $500 million USD had been drawn under the RCF. In March 2020, the other $500 million USD was drawn down in response to market volatility and the ongoing economic uncertainty related to the COVID-19 pandemic, meaning the whole $1 billion USD was outstanding. During the second quarter of 2020, the addition $500 million USD drawing was repaid by the borrower. Then, on March 18, 2021, the lending syndicate — still including the New York Branch of BOC — entered into an amendment agreement with Duke Energy Corporation for the $1 billion USD RCF. The amendment extended the maturity date of the facility by two years — a new maturity period of five years — for a new maturity date in May 15, 2024. Record ID#108424 captures BOC's debt rescheduling of its commitment. As of December 31, 2020, $500 million USD had been drawn under the RCF. As of December 31, 2021, $500 million USD had been drawn under the RCF. Then, on March 9, 2022, a syndicate of 10 banks — including the New York Branch of BOC — entered into a $1,400,000,000 syndicated term loan credit agreement with Duke Energy Corporation for refinancing and general corporate purposes. The loan carried a maturity period of two years and a final maturity date of March 9, 2024, and an interest rate based on Term SOFR (SOFR plus 0.10%) plus a margin of 0.65% per annum or an alternate base rate (the highest of the Bank of Nova Scotia's prime rate, the Federal Funds rate plus 0.50%, or one-month Term SOFR plus 1%). SOFR loans had interest payable on the last day of each interest period, with overdue principal or overdue interest bearing interest, payable on demand, equal to the regular rate plus 1%. Base rate loans had interest payable quarterly in arrears, with overdue principal or overdue interest bearing interest payable on demand plus an addition 1%. The loan also included a fee to the administrative agent. The entire $1.4 billion USD of the term loan was drawn down on March 9, 2022 and were used by the borrower for general corporate purposes, for the repayment in full of all obligations outstanding under the $1 billion USD 2019 RCF, which was then terminated, and to repay a portion of Duke's outstanding commercial paper. The New York Branch of BOC contributed $147,222,222.22 USD, as captured by Record ID#108425. In December 2022, Duke Energy repaid $400 million USD of the term loan. On March 19, 2023, Duke Energy requested a waiver of a provision in the loan for a 30-day notice before it offered or sold convertible securities. In January 2024, Duke prepaid the remaining $1 billion USD outstanding balance of the term loan and in March 2024 the term loan was terminated.