Giant utility Duke Energy is selling some subordinated debentures with a maturity date in 2078
These $25 baby bonds have not yet been priced but with a investment grade expected (S&P BBB) we would think these would price in the mid 5%’s.
The company currently has 1 other baby bond outstanding with a maturity in 2073 and a coupon of 5.125% (NYSE:DUKH)–and it is trading sharply lower on the new issue news.
Be aware that these issues contain the ability for interest payments to be deferred for up to 40 consecutive quarters (10 years). This should be only a minor consideration for investors because if this occurs the economy and this company are in terrible straits.