Duke Energy dips after unveiling planned $1.75 bln equity units offering
DUK•Recent results and analyst view
DUK has about a $97 bln market cap.
Last week, the company posted Q2 profit beat as higher electricity demand and recovery of rate-based infrastructure investments offset rising expenses.
Through Friday's close, DUK shares were up 6.5% year to date, outpacing a 2% gain in the S&P 500 Utilities .SPLRCU.
The average rating of 23 analysts is "buy"; median price target is $138, according to LSEG data.
Use of proceeds and underwriting group
The company intends to use net offering proceeds to redeem its outstanding $500 mln 3.25% debentures due 2082, to partially repay commercial paper, and for general corporate purposes.
Barclays, BofA, Mizuho, Citigroup, Goldman Sachs, J.P. Morgan, Morgan Stanley, Truist and Wells Fargo are bookrunners.
Shares dip as Duke Energy plans capital raise
Duke Energy's DUK.N shares were down 0.4% at $124.40 before the bell as it looks to raise capital to refinance debt.
Charlotte, North Carolina-based utility announces an offering of 35 mln equity units at $50.
The 3-year mandatory convertible units comprise a contract to purchase DUK stock and two 1/40 undivided beneficial ownership interests in its remarketable senior notes.
