DTE Energy Company announces redemption of 2016 Series F 6.00% junior subordinated debentures

Rhea-AI Summary

DTE Energy (NYSE: DTE) announced on Nov. 15, 2021, the pricing of its $280 million offering of 4.375% Junior Subordinated Debentures due December 1, 2081. The proceeds will be used to redeem the 2016 Series F 6.00% Junior Subordinated Debentures, which will be fully redeemed on December 15, 2021, at 100% of their unpaid principal plus accrued interest. This financial maneuver is part of DTE's strategy to manage its debt profile effectively.

Positive

• Pricing of $280 million in 4.375% Junior Subordinated Debentures indicates strong market demand.
• Redemption of higher-interest 2016 Series F debentures will reduce interest expenses.

Negative

• Total debt increases with the issuance of new debentures, potentially affecting financial leverage.

Detroit, Nov. 15, 2021 (GLOBE NEWSWIRE) -- DETROIT, Nov. 15, 2021 – DTE Energy (NYSE: DTE) announced today, Nov. 15, 2021, that it has priced its offering of $280 million aggregate principal amount 2021 Series E 4.375% Junior Subordinated Debentures due Dec. 1, 2081. The use of proceeds will be used to redeem the Company’s 2016 Series F 6.00% Junior Subordinated Debentures (NYSE: DTY).

DTE Energy also announced today the full redemption of all outstanding 2016 Series F 6.00% Junior Subordinated Debentures. The 2016 Series F 6.00% Junior Subordinated Debentures will be redeemed on Dec. 15, 2021. The redemption price is 100 percent of the unpaid principal amount of the 2016 Series F 6.00% Junior Subordinated Debentures, together with accrued and unpaid interest up to, but excluding, Dec. 15, 2021. The 2016 Series F 6.00% Junior Subordinated Debentures will be called for redemption in minimum denominations of $25 and in multiples of $25.

Holders owning 2016 Series F 6.00% Junior Subordinated Debentures through a broker, bank or other nominee should contact that party for information.

For more information, holders of the 2016 Series F 6.00% Junior Subordinated Debentures may contact the paying agent for the redemption: The Bank of New York Mellon Trust Company, N.A., Corporate Trust, 2001 Bryan Street, 10th Floor Dallas, Texas 75201, 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 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers in Michigan. The DTE portfolio also includes non-utility businesses focused on industrial energy services, renewable natural gas, and energy marketing and trading. DTE is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy and economic progress.

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. 

 

 

 

FAQ

What is the latest debt offering from DTE Energy?

DTE Energy announced a $280 million offering of 4.375% Junior Subordinated Debentures due December 1, 2081.

When will DTE Energy redeem its 2016 Series F debentures?

DTE Energy will redeem the 2016 Series F 6.00% Junior Subordinated Debentures on December 15, 2021.

What is the interest rate on DTE Energy's new debentures?

The new debentures have an interest rate of 4.375%.

How will DTE Energy use the proceeds from the new debentures?

The proceeds will be used to redeem the 2016 Series F 6.00% Junior Subordinated Debentures.

What is the redemption price for the 2016 Series F debentures?

The redemption price is 100% of the unpaid principal amount, plus accrued interest.