Hunton Andrews Kurth Advises DTE Electric Company on $601 Million Offering of Senior Secured Securitization Bonds

Hunton Andrews Kurth LLP acted as counsel to DTE Electric Company (“DTE”), and DTE Electric Securitization Funding II LLC (the “Issuer”) on a SEC-registered offering totaling $601,600,000 aggregate principal amount of Senior Secured Securitization Bonds, Series 2023A (the “Bonds”) by the Issuer, a special purpose entity, wholly-owned by DTE, as sponsor, depositor and servicer. The Bonds were sold pursuant to a financing order issued by the Michigan Public Service Commission. The Bond proceeds were used by the Issuer to purchase securitization property from DTE. In accordance with the financing order, DTE will use the proceeds from the sale of its securitization property to reimburse itself for previously-incurred securitization costs associated with the early retirement and recovery of the remaining net book value of the St. Clair and Trenton Channel coal generation plants. This offering closed on November 1, 2023.

The Issuer is organized as a Delaware limited liability company and the sole member of the Issuer is DTE. The Issuer was formed for the purpose of purchasing, owning and administering securitization property, issuing the Bonds and performing activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam O'Brian, Brendan P. Harney, Matt Hayes, and Monika Dziewa. Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Bob Hahn and Hilary Peet Patterson assisted with certain UCC/security interest matters, and George Howell, Anna Page and Zachary Roop provided tax advice, and Leslie Okinaka provided ERISA advice.