Duke
Energy
PremierNotes
SM
John Heffernan
Joe Crapster
Director, Corporate Finance
Manager, Shareholder Communications
Free Writing Prospectus
Filed Pursuant to Rule 433
Registration Number 333-173282 |
Duke
Energy Corporation has filed a registration statement (including a prospectus) with
the United States Securities and Exchange Commission (the SEC) for the
offering to which this communication relates. Before you invest, you should read
the prospectus that is
included
in
that
registration
statement,
as
well
as
the
other
documents
that
Duke
Energy Corporation has filed with the SEC, for more complete information about Duke
Energy Corporation and this offering. You may get these documents for free by
visiting the
SEC
web
site
at
www.sec.gov
or
by
downloading
them
from
the
Duke
Energy
PremierNotes website. Alternatively, Duke Energy Corporation will arrange to send you a
prospectus if you request it by calling toll free at 800-659-DUKE
(3853). 2 |
Introducing PremierNotes
An investment opportunity offering individuals an easy way to invest directly in Duke
Energy Corporation
The Notes are an new unsecured and unsubordinated debt obligation of Duke Energy
Duke Energy has consistently met its financial obligations throughout its
history PremierNotes is an easily accessible, interest bearing investment
Offers an alternative to a savings, money market account and certificates of
deposit You may redeem some or all of your investment at any time through check
writing and other redemption options
Earns a floating interest rate
Rates are evaluated on a weekly basis
Current rates are available by:
Visiting our website at
Calling 800-659-DUKE (3853)
3
www.duke-energy.com/premiernotes |
Duke
Energys Motivation for Program Why PremierNotes is beneficial for Duke
Energy Provides an additional liquidity and funding source to supplement funds
raised through the traditional sources
Diversifying the companys new debt sources helps to ensure access to capital in
all market conditions and at a competitive rate
Allows direct access to retail investors
Why Duke Energy is approaching employees
Employees have an understanding of the company and its business model
Offer a launching platform for the program
4 |
Important
Considerations PremierNotes is not an employee benefit; no company
matching Voluntary Participation
Contact the PremierNotes team for questions by calling us or visiting our
website Consider the risks carefully before investing
Investment risk of the notes
Your personal financial exposure to Duke Energy Corporation
Your Paycheck
Direct or indirect investment in Duke Energy Stock
Direct or indirect investment in Duke Energy Debt
Consider your financial resources and investment objectives before investing in the
notes You should seek advice from a reputable financial advisor before
investing in the notes
5 |
Investment
Risks PremierNotes is a direct investment in Duke Energy and is not an
investment in a diversified money market mutual fund
PremierNotes is not FDIC insured and not guaranteed by Duke Energy
or any of its subsidiaries
PremierNotes is not rated by any rating agency and is not anticipated to
be rated in the future
See PremierNotes Prospectus for more details
6 |
Program
Attributes Earn a higher return than typical bank checking, savings, or money
market accounts
Easy access via checks, ACH and wire transfers for both investments and
redemptions
Minimum
rate to be 0.25% greater than the iMoneyNet Money Fund Average
Higher balances have higher returns
No administrative or maintenance fees, free checks, unlimited check
writing
Low
minimum
balance
of
$1,000,
with
a
special
buildup
option
for
Duke
Energy employees and retirees
7 |
Investing
in PremierNotes There are five ways you can add to your PremierNotes
investment: 1.
Check Investment
Mail a check for $50 ($1,000 for initial investment) or more with an accompanied
investment slip 2.
Automatic Investment
Authorize PremierNotes to add the same amount to your Duke Energy Premier Notes
investment automatically
on
the
same
day
each
month
($50
minimum)
from
your
pre-authorized
bank
account
(linked bank account)
3.
Directed Investment
Make
non-recurring
electronic
transfers
from
your
linked
bank
account
for
a
prescribed
amount
($50
minimum) by calling PremierNotes
4.
Wire Transfer Investment
Make wire transfer investments into Duke Energy Premier Notes ($1,000 minimum) by
contacting your bank
Wire Transfer details available by calling PremierNotes
5.
Automatic Social Security Investment
Invest
your
social
security
benefit
in
Duke
Energy
PremierNotes.
Contact
your
local
Social
Security
Administration office for more details
8 |
Withdrawing any of your investment
There are five ways you can redeem your investment at any time:
1.
Check Redemption
Unlimited check writing out of your PremierNotes investment ($250 minimum per
check) 2.
Written Redemption
Redeem all or part of your investment by writing a letter to PremierNotes ($250
minimum) 3.
Bank Check Redemption
Call PremierNotes and request a bank check be sent to the registered account address
($250 minimum)
4.
Directed Redemption
Call PremierNotes and request a non-recurring electronic transfer (ACH) to your
linked bank account for the prescribed amount ($250 minimum).
5.
Wire Transfer Redemption
Call PremierNotes and request a non-recurring electronic transfer (Bank Wire
Transfer) to your linked bank account ($1,000 minimum, Fee Applies)
9 |
How to
make your initial investment 1.
Obtain an application by either requesting an Enrollment Kit or download the form from
our website
2.
Select and complete your initial investment option:
A.
Include a check for at least $1,000 or
B.
Choose the Duke Energy Employee Investment Option on the application form to
invest $100 per month through payroll direct deposit or your linked bank
account See application for more details
3.
Mail a completed application to the address provided on the form
We strongly recommend investors link their bank account to the PremierNotes
investment during the application process to allow electronic transfers and save
time and effort in the future
10 |
What you
can expect after your application is submitted After your investment is open you
will expect to receive : A Welcome Kit that includes:
1.
Welcome letter
2.
Checkbook, Investment Slips and Change of Address/Check Reorder Form
3.
Program FAQs
4.
Return envelope for future investments
For those of you that elected the Duke Energy Employee Investment
Option using the Payroll Directed Investment, instructions on how to set
up payroll direct deposit will be included in your Welcome Letter
11 |
How to
make changes To make changes to your investment information and features,
you must
contact us and we may require you to submit a change form to:
Duke Energy PremierNotes
P.O. Box 75708
Chicago, IL 60675-5708
Change forms can be downloaded on the website or mailed to your home
Common changes include:
1.
Address
2.
Name
3.
Bank Account number, Bank Name and ABA
4.
Automatic Investment Amount
12 |
How to
close your investment If
you
enroll
in
the
program
and
later
determine
this
investment
is
not
meeting your financial goals, you may close your investment at any time
by:
1.
Request in writing that your investment be closed
2.
Request by telephone that your investment be closed
13 |
Fee
structure 14
Service
Fee
Administrative Fees
Insufficient funds
Stop payment requests
Wire redemptions
Redemptions for less than $250
Investment balance less than $1,000
None
$20
$15
$15
$10
$10/month |
Current
PremierNotes Rates Investment Amount
Rate
Yield
Less than $10,000
1.30%
1.31%
$10,000 to $49,999
1.50%
1.51%
$50,000 to $250,000
1.70%
1.71%
15
*Rates effective April 4, 2011 |
Questions?
For further information, please contact us at:
Website
Phone Email Mail
www.duke-energy.com/premiernotes
800-659-DUKE (3853) Duke
Energy PremierNotes
P.O. Box 75708
Chicago, IL 60675-5708
PremierNotes@duke-energy.com |