DTE Energy company announces redemption of 2012 Series C 5.250% junior subordinated debentures

Rhea-AI Summary

DTE Energy (NYSE: DTE) has priced its offering of $200 million in 4.375% Junior Subordinated Debentures due October 15, 2080. The proceeds will be utilized to fully redeem the 2012 Series C 5.250% Junior Subordinated Debentures, effective October 22, 2020. The redemption will occur at 100% of the principal amount along with accrued interest, and will be available in minimum denominations of $25. DTE Energy operates energy services in Michigan, serving 2.2 million electric and 1.3 million natural gas customers.

Positive

• Issuing new Junior Subordinated Debentures to refinance existing debt improves cash flow management.
• The full redemption of the higher-interest 2012 Series C Debentures reduces future interest expenses.

Negative

• None.

DETROIT, Sept. 23, 2020 (GLOBE NEWSWIRE) -- DTE Energy (NYSE: DTE) announced today, 9/22/2020, that it has priced its offering of $200 million aggregate principal amount 2020 Series G 4.375% Junior Subordinated Debentures due Oct. 15, 2080. The use of proceeds will be used to redeem the Company’s 2012 Series C 5.250% Junior Subordinated Debentures (NYSE: DTQ).

DTE Energy also announced today the full redemption of all outstanding 2012 Series C 5.250% Junior Subordinated Debentures. The 2012 Series C 5.250% Junior Subordinated Debentures will be redeemed on Oct. 22, 2020. The redemption price is 100 percent of the unpaid principal amount of the 2012 Series C 5.250% Junior Subordinated Debentures, together with accrued and unpaid interest up to, but excluding, Oct. 22, 2020. The 2012 Series C 5.250% Junior Subordinated Debentures will be called for redemption in minimum denominations of $25 and in multiples of $25.

Holders owning 2012 Series C 5.250% Junior Subordinated Debentures through a broker, bank or other nominee should contact that party for information.

For more information, holders of the 2012 Series C 5.250% Junior Subordinated Debentures may contact the paying agent for the redemption: The Bank of New York Mellon Trust Company, N.A., Corporate Trust, 111 Sanders Creek Parkway, East Syracuse, New York 13057, or by calling 800-254-2826.

About DTE Energy
DTE Energy (NYSE: DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.2 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio includes energy businesses focused on power and industrial projects; renewable natural gas; natural gas pipelines, gathering and storage; and energy marketing and trading. DTE is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy and economic progress.

For further information, members of the media may contact: Pete Ternes, DTE Energy, 313.235.5555

FORWARD-LOOKING STATEMENTS The information contained herein is as of the date of this release. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this release as a result of new information or future events or developments. Words such as “anticipate,” “believe,” “expect,” “may,” “could,” “projected,” “aspiration,” “plans” and “goals” signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties, and actual results may differ materially.

Pete Ternes
DTE Energy
313.235.5555

FAQ

What is the purpose of DTE's $200 million Junior Subordinated Debentures?

DTE Energy aims to use the proceeds from the $200 million Junior Subordinated Debentures to redeem its higher-rate 2012 Series C Debentures.

When will DTE Energy redeem the 2012 Series C Debentures?

The redemption of the 2012 Series C 5.250% Junior Subordinated Debentures will occur on October 22, 2020.

What is the interest rate of DTE Energy's new Junior Subordinated Debentures?

The new 4.375% Junior Subordinated Debentures are due on October 15, 2080.

How can holders of the 2012 Series C Debentures obtain redemption details?

Holders should contact their broker, bank, or the paying agent for information regarding the redemption.