Filed Pursuant to Rule 433
RegistrationNo. 333-230656-01
Free Writing Prospectus dated February 11, 2020
DTE ELECTRIC COMPANY
PRICING TERM SHEET
$600,000,000 2020 Series A 2.25% General and Refunding Mortgage Bonds due 2030
$500,000,000 2020 Series B 2.95% General and Refunding Mortgage Bonds due 2050
Issuer: | DTE Electric Company | |||
Trade Date: | February 11, 2020 | |||
Settlement Date: | T+10; February 26, 2020 | |||
Anticipated Ratings*: | Aa3 (stable) / A (stable) / A+ (stable) (Moody’s/ S&P/ Fitch) | |||
Joint Book-Running Managers: | J.P. Morgan Securities LLC Mizuho Securities USA LLC MUFG Securities Americas Inc. Scotia Capital (USA) Inc. TD Securities (USA) LLC | |||
Co-Managers: | Fifth Third Securities, Inc. SunTrust Robinson Humphrey, Inc. U.S. Bancorp Investments, Inc. | |||
Security: | Series A 2.25% General and Refunding Mortgage Bonds due 2030 | Series B 2.95% General and Refunding Mortgage Bonds due 2050 | ||
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Principal Amount: | $600,000,000 | $500,000,000 | ||
Maturity Date: | March 1, 2030 | March 1, 2050 | ||
Coupon: | 2.25% | 2.95% | ||
Interest Payment Dates: | March 1 and September 1, commencing September 1, 2020 | March 1 and September 1, commencing September 1, 2020 | ||
Benchmark Treasury: | 1.750% due November 15, 2029 | 2.250% due August 15, 2049 | ||
Benchmark Treasury Price/Yield: | 101-16/1.583% | 104-11+/2.052% | ||
Spread to Benchmark Treasury: | +68 bps | +90 bps | ||
Yield to Maturity | 2.263% | 2.952% |
Price to Public: | 99.884% | 99.960% | ||
Optional Redemption: | Prior to December 1, 2029, the 2030 Bonds will be redeemable in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2030 Bonds being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest that would be due if the 2030 Bonds matured on December 1, 2029 discounted on a semi-annual basis at the Adjusted Treasury Rate, plus 15 basis points; plus in either case, accrued and unpaid interest to the redemption date.
On or after December 1, 2029, the 2030 Bonds will be redeemable at a redemption price equal to 100% of the principal amount of 2030 Bonds being redeemed, plus accrued and unpaid interest to the redemption date. | Prior to September 1, 2049, the 2050 Bonds will be redeemable in whole at any time or in part from time to time, at a redemption price equal to the greater of (i) 100% of the principal amount of the 2050 Bonds being redeemed and (ii) the sum of the present values of the remaining scheduled payments of principal and interest that would be due if the 2050 Bonds matured on September 1, 2049 discounted on a semi-annual basis at the Adjusted Treasury Rate, plus 15 basis points; plus in either case, accrued and unpaid interest to the redemption date.
On or after September 1, 2049, the 2050 Bonds will be redeemable at a redemption price equal to 100% of the principal amount of 2050 Bonds being redeemed, plus accrued and unpaid interest to the redemption date. | ||
CUSIP: | 23338V AK2 | 23338V AL0 | ||
ISIN: | US23338VAK26 | US23338VAL09 |
*Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities LLC collect at1-212-834-4533, Mizuho Securities USA LLC toll free at (866)271-7403, MUFG Securities Americas Inc. toll free at (877)649-6848, Scotia Capital (USA) Inc. toll free at (800)372-3930 or TD Securities (USA) LLC toll free at (855)495-9846.