Newsroom


DTE Energy Announces Commencement of Financing for Power & Industrial Projects Monetization

PRNewswire-FirstCall
DETROIT
(NYSE:DTE)

DETROIT, Oct. 26 /PRNewswire-FirstCall/ -- DTE Energy Co. (NYSE: DTE) today announced that its indirect wholly-owned subsidiary, Energy and Industrial Utilities Company, LLC ("EIUC"), intends to offer $275 million of its senior notes due 2017 (the "Notes") in a private placement financing with institutional investors and to enter into a senior secured credit facility, consisting of a $375 million senior secured term loan facility and a $50 million senior secured revolving facility, concurrently with the offering of the Notes.

The Notes and the new credit facility will be guaranteed by certain of EIUC's subsidiaries but will not be an obligation of DTE Energy or any of its other affiliates.

In connection with the announced financing, DTE Energy Services Inc. ("DTEES"), a wholly-owned subsidiary of DTE Energy, and certain of its affiliates have assigned their respective interests in 14 energy-, industrial- and utility-related projects to EIUC. An affiliate of General Electric Capital Corporation ("GECC") has agreed to acquire 50% of the equity interests in EIUC's parent company (the "GECC Affiliate Purchase") following the consummation of the offering of the Notes and the closing and funding of the new credit facility. Neither GECC nor any affiliate of GECC will own any equity interests of EIUC's parent company at the closing of the offering of the Notes.

The net proceeds from the offering of the Notes, together with the proceeds from the borrowings under the new credit facility and the GECC Affiliate Purchase, will be used to repay certain intercompany indebtedness provided by DTEES or its affiliates, reimburse DTEES and its affiliates for certain pre-formation expenses, pay a dividend to DTEES and pay certain transaction-related fees and expenses.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the "Act"), and are being offered and sold in the United States only to qualified institutional buyers in reliance on Rule 144A under the Act and to certain non-U.S. persons in transactions outside the United States in reliance on Regulation S under the Act.

This announcement does not constitute an offer to sell, or the solicitation of offers to buy, any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.

DTE Energy is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include Detroit Edison, an electric utility serving 2.2 million customers in Southeastern Michigan, MichCon, a natural gas utility serving 1.3 million customers in Michigan and other non-utility, energy businesses focused on gas pipelines and storage, coal transportation, unconventional gas production and power and industrial projects. Information about DTE Energy is available at dteenergy.com.

SOURCE: DTE Energy Co.

CONTACT: Media, Scott Simons, +1-313-235-8808, or Lorie N. Kessler,
+1-313-235-8807, or Analysts, Dan Miner, +1-313-235-5525, or Lisa Muschong,
+1-313-235-8505

Web site: http://www.dteenergy.com/