DETROIT, Oct. 28, 2019 /PRNewswire/ -- DTE Energy
(NYSE: DTE) today announced its intention to commence a
registered underwritten public offering of approximately
$300 million of its common shares and
23 million equity units, subject to market and other conditions.
DTE intends to use the net proceeds from this offering for the
purchase of midstream natural gas assets.
Each equity unit will be issued in a stated amount
of $50 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 2019 Series F remarketable senior notes
due 2025 having a principal amount of $1,000. The offering is
expected to close on or about Nov. 1, 2019, subject to
customary closing conditions. Total annual distribution on the
equity units will consist of interest on the 2019 Series F
remarketable senior notes and payments under the related stock
purchase contracts.
DTE expects to grant the underwriters in the offering of common
shares an option to purchase up to an additional $45 million of common shares and the underwriters
in the offering of equity units an option to purchase up to an
additional 3 million equity units.
Barclays, BofA Securities, J.P. Morgan, Wells Fargo Securities,
Citigroup and Scotia Howard Weil will be joint book-running
managers for the offerings.
The offerings will be made under an effective shelf registration
statement, filed with the U.S. Securities and Exchange Commission
(the "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 securities
will be made exclusively by means of a prospectus supplement
relating to such securities and accompanying prospectus. Copies of
these documents may be obtained by contacting Barclays Capital
Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
Edgewood, NY 11717, at (888)
603-5847; BofA Securities, Inc., Attention: Prospectus Department,
200 North College Street, NC1-004-03-43, Charlotte, NC 28255-0001, at (800) 294-1322,
dg.prospectus_requests@baml.com; J.P. Morgan Securities LLC, c/o
Broadridge Financial Solutions 1155 Long Island Avenue Edgewood, NY 11717, at (866) 803-9204; Wells
Fargo Securities, LLC, Attention: Equity Syndicate Department, 375
Park Avenue, 4th Floor, New York,
NY 10152, at (800) 326-5897; Citigroup, c/o Broadridge
Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, (800) 831-9146; and Scotia
Capital (USA) Inc., 250 Vesey
Street, 24th Floor, New York,
NY 10281, Attention: Equity Capital Markets, at (212)
255-6854, us.ecm@scotiabank.com.
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 company serving 2.2 million customers
in Southeast Michigan and a natural gas company serving
1.3 million customers in Michigan. The DTE portfolio includes
energy businesses focused on power and industrial projects;
renewable natural gas; natural gas pipelines, gathering and
storage; and energy marketing and trading.
FORWARD-LOOKING STATEMENTS
The information contained herein is as of the date of this
release. DTE Energy expressly disclaims any current intention to
update any forward-looking statements contained in this release as
a result of new information or future events or developments. Words
such as "anticipate," "believe," "expect," "may," "could,"
"projected," "aspiration," "plans" and "goals" signify
forward-looking statements. Forward-looking statements are not
guarantees of future results and conditions but rather are subject
to various assumptions, risks and uncertainties. This release
contains forward-looking statements about DTE Energy's financial
results and estimates of future prospects, and actual results may
differ materially. Many factors impact forward-looking statements
including, but not limited to, the following: impact of regulation
by the EPA, the FERC, the MPSC, the NRC, and for DTE Energy, the
CFTC, as well as other applicable governmental proceedings and
regulations, including any associated impact on rate structures;
the amount and timing of cost recovery allowed as a result of
regulatory proceedings, related appeals, or new legislation,
including legislative amendments and retail access programs;
economic conditions and population changes in the geographic area resulting in changes in
demand, customer conservation, and thefts of electricity and, for
DTE Energy, natural gas; the operational failure of electric or gas
distribution systems or infrastructure; impact of volatility of
prices in the oil and gas markets on DTE Energy's gas storage and
pipelines operations; impact of volatility in prices in the
international steel markets on DTE Energy's power and industrial
projects operations; the risk of a major safety incident;
environmental issues, laws, regulations, and the increasing costs
of remediation and compliance, including actual and potential new
federal and state requirements; the cost of protecting assets
against, or damage due to, cyber incidents and terrorism; health,
safety, financial, environmental, and regulatory risks associated
with ownership and operation of nuclear facilities; volatility in
the short-term natural gas storage markets impacting third-party
storage revenues related to DTE Energy; volatility in commodity
markets, deviations in weather, and related risks impacting the
results of DTE Energy's energy trading operations; changes in the
cost and availability of coal and other raw materials, purchased
power, and natural gas; advances in technology that produce power,
store power or reduce power consumption; changes in the financial
condition of significant customers and strategic partners; the
potential for losses on investments, including nuclear
decommissioning and benefit plan assets and the related increases
in future expense and contributions; access to capital markets and
the results of other financing efforts which can be affected by
credit agency ratings; instability in capital markets which could
impact availability of short and long-term financing; the timing
and extent of changes in interest rates; the level of borrowings;
the potential for increased costs or delays in completion of
significant capital projects; changes in, and application of,
federal, state, and local tax laws and their interpretations,
including the Internal Revenue Code, regulations, rulings, court
proceedings, and audits; the effects of weather and other natural
phenomena on operations and sales to customers, and purchases from
suppliers; unplanned outages; employee relations and the impact of
collective bargaining agreements; the availability, cost, coverage,
and terms of insurance and stability of insurance providers; cost
reduction efforts and the maximization of plant and distribution
system performance; the effects of competition; changes in and
application of accounting standards and financial reporting
regulations; changes in federal or state laws and their
interpretation with respect to regulation, energy policy, and other
business issues; contract disputes, binding arbitration,
litigation, and related appeals; and the risks discussed in the
Registrants' public filings with the Securities and Exchange
Commission.
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SOURCE DTE Energy