By Stephanie N. Rotondo
Seattle, Nov. 28 – DTE Energy Co. priced $280 million of 6% $25-par 2016 series F junior subordinated debentures (BBB-) due Dec. 15, 2076 on Monday, a market source reported.
Price talk was 6% to 6.125%.
BofA Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Interest will be payable on a quarterly basis. The payments can be deferred for up to 40 consecutive quarterly periods but will result in the interest rate increasing.
The debentures become redeemable on or after Dec. 15, 2021 at par plus accrued interest. The notes can be redeemed prior to that date, in whole, in the event of a tax change or rating agency event.
Upon a tax event, the redemption price is par plus accrued interest. In the case of a rating agency event, the price is 102% of par plus accrued interest.
The new securities will be listed on the New York Stock Exchange.
The Detroit-based power producer will use the proceeds to redeem $280 million of the outstanding 2011 series I 6.5% junior subordinated debentures due 2061.
| Issuer: | DTE Energy Co.
|
| Securities: | 2016 series F junior subordinated debentures
|
| Amount: | $280 million
|
| Maturity: | Dec. 15, 2076
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Coupon: | 6%
|
| Price: | Par of $25
|
| Yield: | 6%
|
| Talk: | 6% to 6.125%
|
| Call options: | On or after Dec. 15, 2021 at par; also, in whole upon a tax event at par plus accrued interest; or in whole upon a rating agency event at 102% of par plus accrued interest
|
| Pricing date: | Nov. 28
|
| Settlement date: | Dec. 7
|
| Rating: | S&P: BBB-
|
| Expected listing: | NYSE
|
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