Davis Polk advised the counterparty in connection with an accelerated share repurchase transaction entered into between the counterparty and Duke Energy Corporation (“Duke Energy”), pursuant to which Duke Energy is repurchasing $750 million of its common stock. Under the terms of the transaction, Duke Energy will make a $750 million payment to the counterparty, and will receive an initial delivery from the counterparty of approximately 8.3 million shares. The final number of shares to be repurchased is dependent upon the average of the daily volume-weighted average prices of Duke Energy’s common stock during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the transaction. Under certain circumstances the delivery of additional shares of common stock to Duke Energy or an additional delivery of shares of common stock or a cash payment, at Duke Energy’s election, by Duke Energy to the counterparty may be required. The final settlement of the transaction is expected to occur by the end of the third quarter of 2015. Duke Energy also entered into a contemporaneous and substantially identical transaction with a second dealer.    

Headquartered in Charlotte, North Carolina, Duke Energy is the largest electric power holding company in the United States.   

The Davis Polk equity derivatives team included partner James T. Rothwell and associate Katharine O’Banion. All members of the Davis Polk team are based in the New York office.   

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