Filed pursuant to Rule 433
February 26, 2024
Relating to
Preliminary Prospectus Supplement dated February 26, 2024
to
Prospectus dated September 23, 2022
Registration Statement No. 333-267583-04
DUKE ENERGY indiana,
LLC
$300,000,000 FIRST MORTGAGE BONDS,
SERIES BBBB, 5.25%, DUE MARCH 1, 2034
Pricing Term Sheet
Issuer: | Duke Energy Indiana, LLC (the “Issuer”) |
Trade Date: | February 26, 2024 |
Settlement Date: | March 1, 2024; T+4 |
Security Description: | First Mortgage Bonds, Series BBBB, 5.25%, Due March 1, 2034 (the “Mortgage Bonds”) |
Expected Ratings (Moody’s/S&P):* | Aa3 (Stable) / A (Stable) |
Interest Payment Dates: | March 1 and September 1 of each year, beginning on September 1, 2024 |
Principal Amount: | $300,000,000 |
Maturity Date: | March 1, 2034 |
Coupon: | 5.25% |
Benchmark Treasury: | 4.000% due February 15, 2034 |
Benchmark Treasury Price: | 97-20+ |
Benchmark Treasury Yield: | 4.293% |
Spread to Benchmark Treasury: | +100 bps |
Yield to Maturity: | 5.293% |
Price to Public: | 99.669% per Mortgage Bond |
Redemption Provisions/ Make-Whole Call: |
Prior to December 1, 2033 (the date that is three months prior to the maturity date of the Mortgage Bonds (the “Par Call Date”)), the Issuer may redeem the Mortgage Bonds at its option, in whole or in part, at any time and from time to time, at a redemption price |
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(expressed as a percentage of principal amount and rounded to three decimal places) equal to the greater of: (a) the sum of the present values of the remaining scheduled payments of principal and interest thereon discounted to the redemption date (assuming the Mortgage Bonds matured on the Par Call Date) on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 15 basis points less (b) interest accrued to the redemption date; and 100% of the principal amount of the Mortgage Bonds to be redeemed, plus, in either case, accrued and unpaid interest thereon to, but excluding the redemption date.
On or after the Par Call Date, the Issuer may redeem the Mortgage Bonds at its option, in whole or in part, at any time and from time to time, at a redemption price equal to 100% of the principal amount of the Mortgage Bonds to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. | |
CUSIP / ISIN: | 26443T AE6 / US26443TAE64 |
Joint Book-Running Managers: |
BNP Paribas Securities Corp. Citigroup Global Markets Inc. Mizuho Securities USA LLC TD Securities (USA) LLC |
Co-Managers: |
CIBC World Markets Corp. Regions Securities LLC Siebert Williams Shank & Co., LLC CAVU Securities LLC Penserra Securities LLC |
* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time. Each credit rating should be evaluated independently of any other credit rating.
The Issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Issuer has filed with the SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the Issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling BNP Paribas Securities Corp. toll-free at (800) 854-5674, Citigroup Global Markets Inc. toll-free at (800) 831-9146, Mizuho Securities USA LLC at (866) 271-7403 or TD Securities (USA) LLC toll-free at (855) 495-9846.
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