Bank of China contributes $187.5 million USD to a $1.5 billion USD syndicated term loan to Duke Energy for general corporate purposes

Project narrative

On March 19, 2020, a syndicate of eight banks — including the New York Branch of the Bank of China (BOC) — entered into a $1,500,000,000 syndicated term loan 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. This loan carried a maturity period of 364 days and a final maturity date of March 18, 2021 and a variable interest based on LIBOR plus a margin of 0.65% per annum or the highest of the PNC Bank'ss prime rate, the Federal Funds rate plus 0.50%, or one-month LIBOR plus 1%). LIBOR loans had interest payable on the last day of each interest period. Overdue interest on LIBOR loans would carry a further 1% margin. Base rate loans had the interest payable on a quarterly basis. Overdue interest on base rate loans would carry a further 1% margin. The loan included a provision to up-size the loan by $500,000,000 USD, via the additional of further lenders or increased participation from the existing ones. The proceeds were to be used by the borrower for general corporate purposes and to reduce (repay) outstanding commercial paper, with the full amount drawn down on March 19, 2020. The New York Branch of BOC contributed $187,500,000 USD. In addition to BOC, the following lenders contributed the respective amounts: PNC Bank, N.A. ($187,500,000 USD), The Bank of Nova Scotia (Scotiabank) ($187,500,000 USD),Truist Bank ($187,500,000 USD), U.S. Bank National Association ($187,500,000 USD), KeyBank National Association ($187,500,000 USD), Sumitomo Mitsui Banking Corporation (SMBC) ($187,500,000 USD), and Wells Fargo Bank, National Association ($187,500,000 USD). PNC Bank served as administrative agent. PNC Capital Markets LLC, Scotiabank, the New York Branch of BOC, SunTrust Robinson Humphrey, Inc., U.S. Bank, KeyBank, SMBC, and Wells Fargo Bank served as joint lead arrangers and joint bookrunners. On March 27, 2020, Duke Energy exercised the provision to up-size the facility, with TD Bank contributing a further $187,500,000 USD to the now $1,687,500,000 USD term loan. By November 2020, Duke Energy had repaid the entire borrowing.