Duke Energy up after $1.75 bln equity units sale

Duke Energy's shares were up 0.4% to $121.65 in premarket trading after the utility secured funding to refinance debt.

The Charlotte, North Carolina-based utility announced pricing of 35 million equity units at $50 each, raising $1.75 billion.

The three-year mandatory convertible units have a 7.75% annual dividend. The threshold appreciation price of $151.47 is 25% above the stock's last close of $121.19.

DUK shares fell nearly 3% on Monday after the company unveiled an offering to redeem its outstanding $500 million 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.

At Monday's close, DUK shares were up 3.4% year to date, outpacing about a 1% gain in the S&P 500 Utilities index.

The average rating of 23 analysts is "buy"; the median price target is $138, according to LSEG data.