DTE Electric Co. sold $600 million of its 2.625% 2020 series C general and refunding mortgage bonds due March 1, 2031.
Interest on the notes is payable every March 1 and Sept. 1, starting Sept. 1, according to a March 31 free writing prospectus.
The notes have a spread to benchmark Treasury of 195 basis points and were expected to be rated Aa3 by Moody's, A by S&P Global Ratings and A+ by Fitch Ratings.
The DTE Energy Co. subsidiary plans to use proceeds to repay $300 million of its 3.45% 2010 series B senior notes due 2020 and $32.4 million of its 2008 series KT variable rate senior notes due 2020. The company will also use proceeds to repay short-term borrowings and for capital expenditures and other general corporate purposes.
Barclays Capital Inc., J.P. Morgan Securities LLC and Scotia Capital (USA) Inc. served as joint book-running managers. Fifth Third Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc. acted as co-managers.