Duke Energy late Wednesday priced its public offering of 54.4 million shares of common stock at $18.35 per share. The public offering, first announced early Wednesday, is expected to raise approximately $1 billion in gross proceeds, and will be used to repay a short-term unsecured loan for the $8.05 billion purchase of Canadian pipeline operator Westcoast Energy completed earlier this year (see Daily GPI, March 25).

The common stock is expected to be issued Oct. 1 under the company’s existing shelf registration with the Securities and Exchange Commission.

Duke also will grant the underwriters an option for up to 30 days to purchase an additional 8.175 million shares of common stock to cover over-allotments. Net proceeds would repay commercial paper incurred by financial subsidiary Duke Capital Corp. for the Westcoast purchase. The sole book running lead manager for the offering will be Morgan Stanley & Co. Inc.

The Charlotte, NC-based company’s public offering is similar to the tactic used this year by energy merchants Aquila Inc., Calpine Corp. and Williams Cos., which have sold securities to pare down their debt and improve liquidity. Last Friday, Duke dropped its 2002 earnings forecast for the second time in two months because of the rapid decline in energy trading and marketing. It also reduced capital spending another 9% to $6.2 billion, and cut 2003 capital spending almost in half to $3.5 billion (see Daily GPI, Sept. 23).

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