By Cristal Cody
Tupelo, Miss., April 30 – DTE Electric Co. priced $525 million of 4.05% 30-year general and refunding mortgage bonds (Aa3/A/A+) on Monday at a spread of 97 basis points over Treasuries, on the tight side of guidance in the Treasuries plus 100 bps area, according to a market source and an FWP filed with the Securities and Exchange Commission.
The bonds priced at 99.551 to yield 4.076%.
Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and TD Securities (USA) LLC were the bookrunners.
The company held fixed income investor calls for the green bond offering on April 17.
Proceeds will be used for renewable energy and energy efficiency expenditures.
The electric company is based in Allentown, Pa.
The electric utility is a subsidiary of Detroit-based DTE Energy Co.
| Issuer: | DTE Electric Co.
|
| Amount: | $525 million
|
| Description: | 2018 series A general and refunding mortgage bonds
|
| Maturity: | May 15, 2048
|
| Bookrunners: | Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch and TD Securities (USA) LLC
|
| Co-managers: | Comerica Securities, Inc., Fifth Third Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments Inc., Drexel Hamilton, LLC and Loop Capital Markets LLC
|
| Coupon: | 4.05%
|
| Price: | 99.551
|
| Yield: | 4.076%
|
| Spread: | Treasuries plus 97 bps
|
| Call features: | Make-whole call before Nov. 15, 2047 at price equal to greater of par and Treasuries plus 15 bps; thereafter at par
|
| Trade date: | April 30
|
| Settlement date: | May 7
|
| Ratings: | Moody’s: Aa3
|
| S&P: A
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 100 bps area
|
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