DTE Energy to sell $1.15 billion mandatory convertible equity units

By Rebecca Melvin

New York, Oct. 28 – DTE Energy Co. announced a $1.15 billion registered underwritten public offering of convertible equity units on Monday.

There is a $150 million over-allotment option.

The company is also selling $300 million of common stock.

The equity units were being talked to yield 6% to 6.5% with an initial conversion premium of 20% to 25%.

Barclays, BofA Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners of the mandatory offering, which is expected to price after the market close on Tuesday.

The $50-par units will hold a contract to purchase common stock and a 1/20th, or 5%, undivided beneficial ownership interest in DTE’s 2019 series F notes due 2025 with a $1,000-par.

There is standard dividend protection above the current $1.0125 dividend.

Proceeds will be used for the purchase of midstream natural gas assets and for general corporate purposes.

DTE is a Detroit-based diversified energy company.

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