By Andrea Heisinger
New York, June 19 - Detroit Edison Co. sold $500 million of general and refunding mortgage bonds, 2012 series A, (A2/A/A) on Tuesday in two parts, a market source said.
The $250 million of 2.65% 10-year notes priced at 99.844 to yield 2.668% with a spread of Treasuries plus 105 basis points.
A $250 million tranche of 3.95% 30-year bonds sold at 99.565 to yield 3.975% with a spread of Treasuries plus 125 bps.
Barclays Capital Inc., J.P. Morgan Securities LLC, RBS Securities Inc. and Scotia Capital (USA) Inc. were the bookrunners.
Proceeds will be used to redeem 5.2% notes due on Oct. 15, 2012, to redeem or repurchase tax-exempt bonds due on Aug. 1, 2024 and Dec. 15, 2032, to repay short-term debt and for general corporate purposes.
The electric utility is based in Detroit.
| Issuer: | Detroit Edison Co.
|
| Issue: | General and refunding mortgage bonds, 2012 series A
|
| Amount: | $500 million
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities LLC, RBS Securities Inc., Scotia Capital (USA) Inc.
|
| Trade date: | June 19
|
| Settlement date: | June 22
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 2.65%
|
| Price: | 99.844
|
| Yield: | 2.668%
|
| Spread: | Treasuries plus 105 bps
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | June 15, 2042
|
| Coupon: | 3.95%
|
| Price: | 99.565
|
| Yield: | 3.975%
|
| Spread: | Treasuries plus 125 bps
|
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