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Debt and Credit Facilities
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Debt And Credit Facilities
DEBT AND CREDIT FACILITIES
SUMMARY OF SIGNIFICANT DEBT ISSUANCES
The following table summarizes significant debt issuances (in millions).
 
 
 
 
 
Three Months Ended
 
 
 
 
 
March 31, 2016
 
 
 
 
 
 
 
Duke

 
Maturity
 
Interest

 
Duke

 
Energy

Issuance Date
Date
 
Rate

 
Energy

 
Carolinas

First Mortgage Bonds
 
 
 
 
 
 
 
March 2016(a)
March 2023

2.500
%
 
$
500

 
$
500

March 2016(a)
March 2046

3.875
%
 
500

 
500

Total issuances
 
 
 
 
$
1,000


$
1,000

(a)
Proceeds will be used to fund capital expenditures for ongoing construction, capital maintenance and for general corporate purposes.
In April 2016, Duke Energy issued $350 million principal amount of senior unsecured notes with a fixed interest rate of 2.875% and maturity date of April 2023. Proceeds will be used to pay down outstanding commercial paper and for general corporate purposes.
CURRENT MATURITIES OF LONG-TERM DEBT
The following table shows the significant components of Current maturities of long-term debt on the Condensed Consolidated Balance Sheets. The Duke Energy Registrants currently anticipate satisfying these obligations with cash on hand and proceeds from additional borrowings.
(in millions)
Maturity Date
 
Interest Rate

 
March 31, 2016

Unsecured Debt
 
 
 
 
 
Duke Energy Indiana
June 2016
 
6.050
%
 
$
325

Duke Energy (Parent)
November 2016
 
2.150
%
 
500

First Mortgage Bonds
 
 
 
 
 
Duke Energy Indiana
July 2016
 
0.937
%
 
150

Duke Energy Carolinas
December 2016
 
1.750
%
 
350

Duke Energy Progress
March 2017
 
0.836
%
 
250

Tax-exempt Bonds
 
 
 
 
 
Duke Energy Carolinas
February 2017
 
3.600
%
 
77

Duke Energy Ohio(a)
August 2027
 
1.266
%
 
50

Other
 
 
 
 
373

Current maturities of long-term debt
 
 
 
 
$
2,075

(a)
Represents Duke Energy Kentucky's bonds with a mandatory put in December 2016.
AVAILABLE CREDIT FACILITIES
Master Credit Facility
Duke Energy has a Master Credit Facility with a capacity of $7.5 billion through January 2020. The Duke Energy Registrants, excluding Progress Energy (Parent), have borrowing capacity under the Master Credit Facility up to a specified sublimit for each borrower. Duke Energy has the unilateral ability at any time to increase or decrease the borrowing sublimits of each borrower, subject to a maximum sublimit for each borrower. The amount available under the Master Credit Facility has been reduced to backstop issuances of commercial paper, certain letters of credit and variable-rate demand tax-exempt bonds that may be put to the Duke Energy Registrants at the option of the holder. Duke Energy Carolinas and Duke Energy Progress are also required to each maintain $250 million of available capacity under the Master Credit Facility as security to meet obligations under plea agreements reached with the U.S. Department of Justice in 2015 related to violations at North Carolina facilities with ash basins. The table below includes the current borrowing sublimits and available capacity under the Master Credit Facility.
 
March 31, 2016
 


 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Duke

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

 
Energy

(in millions)
Energy

 
(Parent)

 
Carolinas

 
Progress

 
Florida

 
Ohio

 
Indiana

Facility size(a)
$
7,500

 
$
3,475

 
$
800

 
$
1,000

 
$
1,200

 
$
425

 
$
600

Reduction to backstop issuances
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper(b)
(2,980
)
 
(1,816
)
 
(300
)
 
(205
)
 
(480
)
 
(29
)
 
(150
)
Outstanding letters of credit
(79
)
 
(72
)
 
(4
)
 
(2
)
 
(1
)
 
—

 
—

Tax-exempt bonds
(116
)
 
—

 
(35
)
 
—

 
—

 
—

 
(81
)
Coal ash set-aside
(500
)
 
—

 
(250
)
 
(250
)
 
—

 
—

 
—

Available capacity
$
3,825


$
1,587


$
211


$
543


$
719


$
396


$
369

(a)
Represents the sublimit of each borrower.
(b)
Duke Energy issued $625 million of commercial paper and loaned the proceeds through the money pool to Duke Energy Carolinas, Duke Energy Progress, Duke Energy Ohio and Duke Energy Indiana. The balances are classified as Long-Term Debt Payable to Affiliated Companies in the Condensed Consolidated Balance Sheets.
Piedmont Bridge Facility
In connection with the Merger Agreement with Piedmont, Duke Energy entered into a $4.9 billion Bridge Facility with Barclays. The Bridge Facility, if drawn upon, may be used (i) to fund the cash consideration for the transaction and (ii) to pay certain fees and expenses in connection with the transaction. In November 2015, Barclays syndicated its commitment under the Bridge Facility to a broader group of lenders. Duke Energy does not expect to draw upon the Bridge Facility. The amount of the Bridge Facility is reduced by any financings related to the Piedmont acquisition entered into by Duke Energy, and has accordingly been reduced to $4.2 billion as a result of the Equity Forwards described in Note 13, "Common Stock." Refer to Note 2 for additional information on the Piedmont acquisition.
Short-Term Loan Facility
On April 7, 2016, Duke Energy borrowed $500 million under a delayed-draw term loan facility (Term Loan) arranged on February 22, 2016. The Term Loan borrowing is due on or before August 19, 2016 and will bear interest at 30-day LIBOR plus 75 basis points. The Term Loan is pre-payable at par and the terms are generally consistent with those governing the Master Credit Facility.