Duke Energy Progress, LLC Issues $1.0B First Mortgage Bonds

What Happened

• Duke Energy Progress, LLC announced it completed the issuance and sale on September 11, 2026 of $700,000,000 aggregate principal amount of First Mortgage Bonds, 5.55% Series due 2036, and $300,000,000 aggregate principal amount of First Mortgage Bonds, 6.15% Series due 2056.
• The bonds were sold to underwriters under an underwriting agreement dated September 8, 2026, and were issued under the company’s Mortgage (including the Ninety-seventh Supplemental Indenture dated September 1, 2026). The bonds were sold at discounts to their principal amounts. A legal opinion on validity was filed as Exhibit 5.1 and the underwriting agreement as Exhibit 99.1.

Key Details

• Total issuance: $1,000,000,000 aggregate principal ($700M due 2036 at 5.55%; $300M due 2056 at 6.15%).
• Transaction dates: Underwriting Agreement dated September 8, 2026; Ninety-seventh Supplemental Indenture dated September 1, 2026; sale consummated September 11, 2026.
• Structure: First Mortgage Bonds issued under the Mortgage and Deed of Trust, with The Bank of New York Mellon and Barbara Zsombori as Mortgage Trustees.
• Sale economics: Bonds were sold to underwriters at discounts to principal (proceeds received were less than aggregate principal amounts).

Why It Matters

• This transaction adds $1.0 billion of long-term, fixed-rate debt to Duke Energy Progress’s capital structure, creating ongoing interest obligations at stated coupon rates (5.55% and 6.15%).
• Because these are First Mortgage Bonds (secured by the Mortgage), they represent senior secured debt in the company’s debt stack, which is material for both bond and equity investors assessing credit profile, leverage and interest costs.
• The filing of the supplemental indenture and legal opinion provides standard documentation needed for registration and investor disclosure around the offering.