8-KOther EventsExhibits & Filings

DTE ENERGY CO 8-K Report, Corporate Update (Dec 7, 2011)

Filed December 7, 2011For Securities:DTEDTKDTBDTGDTW

Summary

DTE Energy Company (DTE) filed a Form 8-K on December 7, 2011, to report the completion of its sale of $280 million in aggregate principal amount of 6.50% Junior Subordinated Debentures due 2061. These debentures were issued under a shelf registration statement and were part of the company's ongoing financing activities. This issuance represents a significant debt financing event for DTE Energy, providing capital for its operations and strategic initiatives. Investors should note the specific terms of these junior subordinated debentures, including their interest rate and long maturity period, which could impact the company's leverage and financial flexibility. The filing also includes various exhibits related to the debenture issuance, such as the supplemental indenture and legal opinions on the offering.

Key Highlights

  • 1DTE Energy completed the sale of $280 million of 6.50% Junior Subordinated Debentures due 2061.
  • 2The debentures were issued under an existing shelf registration statement (File No. 333-161489).
  • 3The issuance was made pursuant to an Amended and Restated Indenture dated April 9, 2001, as supplemented by a December 1, 2011 Supplemental Indenture.
  • 4The 8-K filing serves to report exhibits associated with the debenture sale.
  • 5Key exhibits include the Supplemental Indenture and legal opinions (tax and general counsel) related to the debentures.
  • 6The Vice President and Treasurer, N.A. Khouri, signed the report, indicating treasury and financial management oversight of the issuance.

Frequently Asked Questions

The primary purpose of this Form 8-K filing was to report the completion of DTE Energy's sale of $280 million in 6.50% Junior Subordinated Debentures due 2061 and to file associated exhibits, such as the supplemental indenture and legal opinions.

Junior subordinated debentures are a type of unsecured debt that ranks below other senior debt obligations in the event of bankruptcy or liquidation. For DTE Energy, this issuance represents a way to raise capital, likely for general corporate purposes or to fund infrastructure projects, while potentially impacting its leverage ratios and financial flexibility due to the long-term nature and subordinated status of this debt.

The 6.50% interest rate indicates the cost of borrowing for DTE Energy on this specific debt issuance. The maturity date of 2061 signifies a very long-term debt obligation, which could provide DTE Energy with stable, long-term financing but also implies a long-term commitment to interest payments and principal repayment over many years.

Investors can find more details by reviewing the exhibits filed with this Form 8-K, specifically the Supplemental Indenture (Exhibit 4-274) and the accompanying legal opinions regarding the debentures (Exhibits 5.1, 8.1, 23.1, and 23.2). These documents provide specifics on the terms, conditions, and legal aspects of the debt issuance.