DTE Energy (DTE) Prices 12M Equity Units Offering

September 30, 2016 6:16 AM EDT

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DTE Energy Company (NYSE: DTE) announced 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.



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