First Mortgage Bond Offering

First Mortgage Bond Offering


Robert W. Baird & Co. served as a co-manager on this offering.


Progress Energy Carolinas, Inc. (“PEC” or the “Company”), a wholly-owned subsidiary of Progress Energy, Inc. (NYSE:PGN), recently completed an offering for $1,000,000,000 in aggregate principal amount of First Mortgage Bonds. The offering consisted of $500,000,000 of 2.80% bonds due 2022 issued at 99.775% and $500,000,000 of 4.10% bonds due 2042 issued at 99.504%. PEC plans to use the net proceeds from the sale of the bonds to retire upon maturity all of the Company’s outstanding 6.50% Notes due July 15, 2012 and to repay a portion of the Company’s outstanding short-term debt, which includes commercial paper borrowings and notes payable to affiliated companies.

Progress Energy, Inc. (“Progress”), a utility holding company, engages in the generation, transmission, distribution and sale of electricity in North Carolina, South Carolina and Florida. Progress’ wholly-owned subsidiaries, PEC and Progress Energy Florida, Inc., collectively own and operate 23,000 megawatts of regulated electric generation capacity and serve approximately 3.1 million retail electric customers as well as other load-serving entities.

This transaction is Baird's third successful capital raising engagement with Progress Energy, Inc.

For additional information about this transaction, please contact:

Dick Waid (404) 264-2210
John Lanza (414) 298-7669
Pat Lawton (414) 298-7764
First Mortgage Bond Offering
May 2012
Progress Energy Carolinas, Inc.
Target Location
North America