Summary
This 8-K filing reports on a private placement transaction by The Detroit Edison Company, a subsidiary of DTE Energy. On December 18, 2007, Detroit Edison successfully issued and sold $50 million in aggregate principal amount of its 2007 Series A 6.47% Senior Notes due March 15, 2038. These notes were placed with a group of institutional investors and are not registered under the Securities Act of 1933, meaning they are subject to transfer restrictions. The issuance was formalized through a Note Purchase Agreement and a supplemental indenture to Detroit Edison's Collateral Trust Indenture. The Notes carry a coupon rate of 6.47% and are secured by a corresponding series of Detroit Edison's General and Refunding Mortgage Bonds. The company retains the option to redeem these notes, in whole or in part, at any time. This transaction represents a new long-term debt obligation for Detroit Edison.
Key Highlights
- 1The Detroit Edison Company (a DTE Energy subsidiary) issued $50 million in 6.47% Senior Notes due 2038.
- 2The issuance occurred on December 18, 2007, through a private placement with institutional investors.
- 3The Notes mature on March 15, 2038, and carry a fixed interest rate of 6.47% per annum.
- 4Interest payments are semi-annual, due on March 15 and September 15, commencing March 15, 2008.
- 5The Notes are secured by a corresponding series of Detroit Edison's General and Refunding Mortgage Bonds.
- 6Detroit Edison has the option to redeem the Notes at any time, either in whole or in part.
- 7The Notes were issued under an exemption from registration under the Securities Act of 1933 and are subject to transfer restrictions.