High-grade primary action sees DTE Energy’s $600 million of 3.7% five-year senior notes

By Devika Patel

Knoxville, Tenn., Aug. 2 – The high-grade bond market remained slow on Thursday, with one new deal announced and pricing a few hours later.

Detroit energy company DTE Energy Co. announced a new sale of fixed-rate 2018 series D senior notes Thursday morning, with pricing set by late afternoon for a $600 million issue of 3.7% five-year notes (Baa1/BBB/BBB+), which were sold with a spread of Treasuries plus 88 basis points.

The notes priced at 99.843 to yield 3.735%. They will feature a make-whole call at Treasuries plus 15 bps until July 1, 2023 and then a par call.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, MUFG and Scotia Capital (USA) Inc. were the bookrunners for the Securities and Exchange Commission-registered issue.

Proceeds will be used to repay short-term borrowings and for general corporate purposes.

Funds see inflow

Investment-grade corporate funds saw another solid week of inflows with $1.211 billion entering the space in the week ended Aug. 1, according to fund-flow statistics generated by AMG Data Services Inc..

The inflow follows a $1.986 billion addition of investor cash in the week ending July 25, which came after a similarly sized inflow of $2.021 billion.

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