By Cristal Cody
Tupelo, Miss., Aug. 3 – DTE Energy Co. priced an upsized $800 million of 1.05% five-year senior notes (Baa1/BBB/BBB) on Monday at 99.879 to yield 1.076%, or a Treasuries plus 85 basis points spread, according to a market source and an FWP filed with the Securities and Exchange Commission.
Price guidance was in the Treasuries plus 120 bps area.
The deal was upsized from $500 million.
Citigroup Global Markets Inc., BMO Capital Markets Corp., Morgan Stanley & Co. LLC and PNC Capital Markets LLC were the bookrunners.
Proceeds will be used for the repayment of short-term borrowings, which have an interest rate of approximately 0.19% and maturities under 30 days, and for general corporate purposes.
The Detroit-based energy company provides utility operations through its wholly owned subsidiaries DTE Electric Co. and DTE Gas Co.
| Issuer: | DTE Energy Co.
|
| Amount: | $800 million
|
| Maturity: | June 1, 2025
|
| Description: | 2020 series F senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BMO Capital Markets Corp., Morgan Stanley & Co. LLC and PNC Capital Markets LLC
|
| Co-managers: | KeyBanc Capital Markets Inc. and U.S. Bancorp Investments Inc.
|
| Coupon: | 1.05%
|
| Price: | 99.879
|
| Yield: | 1.076%
|
| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call before May 1, 2025 at greater of par and Treasuries plus 15 bps; thereafter at par
|
| Trade date: | Aug. 3
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 120 bps area
|
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