Business Context and Reporting Period
This Form 8-K Current Report was filed by Duke Energy Corporation and its wholly-owned subsidiaries (Duke Energy Carolinas, LLC; Duke Energy Ohio, Inc.; Duke Energy Indiana, Inc.; and Duke Energy Kentucky, Inc.) on June 28, 2007. The report details the entry into a material definitive agreement regarding corporate financing.
Key Financial Metrics
The filing discloses the establishment of a new credit facility but does not provide revenue, profit, cash flow, or margin data.
- Total Credit Facility: $2,650,000,000
- Facility Type: Amended and Restated Credit Agreement
- Term Extension: Extended to June 28, 2012
- Administrative Agent: Wachovia Bank, National Association
Borrowing Sublimits by Entity:
| Entity | Sublimit |
|---|---|
| Duke Energy Corporation | $850,000,000 |
| Duke Energy Carolinas, LLC | $800,000,000 |
| Duke Energy Ohio, Inc. | $500,000,000 |
| Duke Energy Indiana, Inc. | $400,000,000 |
| Duke Energy Kentucky, Inc. | $100,000,000 |
Material Changes
The primary material change is the amendment and restatement of the credit agreement to conform terms with other prior Duke Energy syndicated facilities and to extend the maturity date to June 28, 2012. This facility is designed to support the Duke Energy Corporation $1,500,000,000 commercial paper program (marketing began June 29, 2007) and the Duke Energy Carolinas commercial paper program.
Outlook, Risks, and Management Commentary
The filing does not contain specific management commentary on future earnings, risks, or contingencies beyond the terms of the credit agreement. The disclosure is qualified in its entirety by the provisions of the Amended and Restated Credit Agreement attached as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 for specific interest rate terms, covenants, and conditions of the $2.65 billion credit facility.
- Verify the status of the $1.5 billion commercial paper program supported by this agreement.
- Confirm the allocation of borrowing capacity among the parent company and its regional subsidiaries.
- Check for any subsequent filings regarding the utilization of this credit line.