Published on 10/30/2019 in the Prospect News Investment Grade Daily.
New Issue: DTE Energy prices $800 million senior notes in two tranches
By Devika Patel
Knoxville, Tenn., Oct. 30 – DTE Energy Co. priced $800 million of fixed-rate senior notes (Baa2/BBB/BBB+) in two parts on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The company sold $500 million of 2.25% three-year 2019 series G senior notes. These notes were sold with a spread of Treasuries plus 65 basis points and priced at 99.851 to yield 2.302%.
The company sold $300 million of 2.95% 2019 series H senior notes due March 1, 2030. These notes were sold with a spread of Treasuries plus 115 basis points and priced at 99.676 to yield 2.987%.
Barclays, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
The Detroit energy company will use the proceeds to purchase a midstream gathering and lateral system in the Haynesville shale formation of Louisiana.
| Issuer: | DTE Energy Co.
|
| Amount: | $800 million
|
| Description: | Fixed-rate senior notes
|
| Bookrunners: | Barclays, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., BofA Securities, Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
|
| Senior co-managers: | BMO Capital Markets Corp., BNP Paribas Securities Corp., BNY Mellon Capital Markets LLC, Fifth Third Securities Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, MUFG, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bancorp Investments Inc.
|
| Co-managers: | Comerica Securities, PNC Capital Markets LLC and Williams Capital Group LP
|
| Trade date: | Oct. 29
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Series G notes
|
| Amount: | $500 million
|
| Description: | 2019 series G notes
|
| Maturity: | Nov. 1, 2022
|
| Coupon: | 2.25%
|
| Price: | 99.851
|
| Yield: | 2.302%
|
| Spread: | Treasuries plus 65 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps
|
|
|
| Series H notes
|
| Amount: | $300 million
|
| Description: | 2019 series H notes
|
| Maturity: | March 1, 2030
|
| Coupon: | 2.95%
|
| Price: | 99.676
|
| Yield: | 2.987%
|
| Spread: | Treasuries plus 115 bps
|
| Call feature: | Make-whole call at Treasuries plus 20 bps until Dec. 1, 2029 and then a par call
|
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