DTE Energy Announces Pricing Of Equity Units

DETROIT, Sept. 29, 2016 /PRNewswire/ -- DTE Energy Company ("DTE") announced today that it has priced its offering of 12 million equity units.

DTE Energy

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 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, 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.


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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For further information: For further information: Pete Ternes 313-235-9154