DETROIT, Sept. 29, 2016 /PRNewswire/ -- DTE Energy
Company ("DTE") announced today that it has priced its offering of
12 million equity units.
Each equity unit will be issued in a stated amount of
$50 ($600
million aggregate stated amount) and will consist of a
contract to purchase common stock in the future and a 1/20, or 5%,
undivided beneficial ownership interest in DTE's 2016 Series C
remarketable senior notes due 2024 having a principal amount of
$1,000. The remarketable senior notes
are subject to remarketing to commence no earlier than June 27, 2019. The offering is expected to close
on or about Oct. 5, 2016, subject to
customary closing conditions.
Total annual distribution on the equity units will be at the
rate of 6.50 percent, consisting of interest on the 2016 Series C
remarketable senior notes and payments under the related stock
purchase contracts. The reference price for the equity units is
$93.05 per share. The threshold
appreciation price for the equity units is $116.31 per share, which represents a premium of
approximately 25 percent over the reference price. Under the
purchase contract, holders will be required to purchase a variable
number of shares of DTE Energy common stock no later than
Oct. 1, 2019.
DTE has granted the underwriters an option to purchase during
the 13-day period beginning on, and including, the initial issuance
date of the equity units up to 1.5 million additional equity units,
or an additional aggregate stated amount of $75 million.
DTE intends to use the net proceeds from this offering, which
are expected to be $582 million in
the aggregate or $655 million in the
aggregate if the overallotment option is exercised in full (in each
case, after deducting underwriting discounts and commissions but
before deducting other offering expenses), for the purchase of
midstream natural gas assets.
Wells Fargo Securities, Citigroup and J.P. Morgan are acting as
joint book-running managers for the offering.
The offering will be made under an effective shelf registration
statement, as amended, filed with the U.S. Securities and Exchange
Commission ("SEC"). This news release does not constitute an offer
to sell or a solicitation of an offer to buy the securities
described herein, nor shall there be any sale of these securities
in any state or jurisdiction in which such an offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities law of any such jurisdiction. Any offers of
the securities will be made exclusively by means of a prospectus
supplement and accompanying prospectus. Copies of these documents
may be obtained by contacting Wells Fargo Securities, LLC ,Attn:
Equity Syndicate Department, 375 Park Avenue, New York, NY 10152, at (800) 326-5897 or email
a request to cmclientsupport@wellsfargo.com or Citigroup
Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long
Island Avenue, Edgewood, New York
11717, at (800) 831-9146 or by e-mail at prospectus@citi.com, or
J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions,
1155 Long Island Avenue, Edgewood,
NY 11717, at (866) 803-9204.
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 utility serving 2.2 million customers
in Southeastern Michigan and a natural gas utility
serving 1.2 million customers in Michigan. The DTE Energy
portfolio includes non-utility energy businesses focused on power
and industrial projects, natural gas pipelines, gathering and
storage, and energy marketing and trading.
FORWARD-LOOKING STATEMENTS
Certain information presented herein includes "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results
of operations, and businesses of DTE Energy. Words such as
"anticipate," "believe," "expect," "projected," "aspiration," and
"goals" signify forward-looking statements. Forward-looking
statements are not guarantees of future results and conditions, but
rather are subject to numerous assumptions, risks, and
uncertainties that may cause actual future results to be materially
different from those contemplated, projected, estimated, or
budgeted. Many factors may impact these forward-looking statements
including, but not limited to, the following: the failure to
consummate the transaction, the risk that we will not achieve
expected synergies, the risk that the operations being acquired in
the acquisition will not be successfully integrated or that such
integration will take longer than expected, the risk that the
operations being acquired will not perform as expected; and the
risks discussed in our public filings with the Securities and
Exchange Commission ("SEC"). Accordingly, investors should
not place undue reliance on forward-looking statements as a
prediction of actual results. New factors emerge from time to
time. We cannot predict what factors may arise or how such factors
may cause results to differ materially from those contained in any
forward-looking statement. Any forward-looking statements speak
only as of the date on which such statements are made. We undertake
no obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is
made or to reflect the occurrence of unanticipated events. Other
factors that may impact our future results are contained in DTE
Energy's 2015 Annual Report on Form 10-K and 2016 quarterly reports
on Form 10-Q and other reports filed by DTE Energy with the
SEC.
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SOURCE DTE Energy