DTE Energy to price at least $150 million of $25-par junior subordinated debentures due 2076

By Stephanie N. Rotondo

Seattle, May 23 – DTE Energy Co. is planning a $150 million offering of $25-par 2016 series B junior subordinated debentures due June 1, 2076 (expected ratings: Baa1/BBB-/BBB-), according to a prospectus filed with the Securities and Exchange Commission on Monday.

Price talk is around 5.5%, a market source reported.

BofA Merrill Lynch, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the co-managers.

Interest will be payable on the first day of March, June, September and December, beginning Sept. 1. The company has the option to defer the interest payments for up to 40 consecutive quarters.

The debentures become redeemable June 1, 2021 at par plus accrued interest. The company can also redeem the issue upon a rating agency event at 102% of par plus accrued interest.

The Detroit-based energy producer intends to list the new securities on the New York Stock Exchange.

Proceeds will be used to repay the $300 million of 6.35% 2006 series B senior notes due June 1, 2016 and for general corporate purposes.

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