Hunton & Williams advises Duke Energy Florida on $1,294 million offering of rate reduction bonds

Hunton & Williams acted as counsel to Duke Energy Florida, LLC (“DEF”) and Duke Energy Florida Project Finance, LLC (the “Issuer”) on an SEC-registered offering of $1,294,290,000 aggregate principal amount of Series A Senior Secured Bonds (the “Bonds”) by the Issuer, sold pursuant to a financing order issued by the Florida Public Service Commission. The Bond proceeds will be used to purchase nuclear asset-recovery property from DEF. DEF will use the proceeds to pay down a portion of its outstanding short-term debt and general corporate purposes relating to early retirement of DEF’s Crystal River 3 Nuclear Plant. The Bonds are a category of utility rate reduction bonds issued on behalf of public utilities and are the first securities to be registered with the SEC on Form SF-1.

The Issuer is organized as a Delaware limited liability company and DEF is its sole member. It was formed for the purpose of purchasing, owning and administering nuclear asset-recovery property, issuing the Bonds and performing activities incidental thereto.

The Hunton & Williams team included Michael Fitzpatrick and Adam O’Brian. Jason Harbour assisted with certain bankruptcy advice, Samuel Danon and Douglas Dreier assisted with US Constitutional matters and Cary Tolley, Anna Page and Emily Winbigler provided tax advice.