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DTE Energy Co., 8.75% Equity Security Units due 8/16/05
Ticker Symbol: DTE-B* CUSIP: 233331206 Exchange: NYSE
* NOTE: This security is no longer trading as of 8/16/2005
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QUANTUMONLINE.COM SECURITY DESCRIPTION: DTE Energy Co., 8.75% Equity Security Units, stated amount $25 per unit, initially consisting of normal units which include a stock purchase contract and a 4.60% senior note with a principal amount of $25. The purchase contract requires the holder to purchase for $25 a variable number of shares of DTE Energy Co. (NYSE: DTE) common stock no later than 8/16/2005 and pays a contract adjustment rate of 4.15%. The purchase settlement rate will be 0.4817 shares per unit if the then current market price is equal to or greater than $51.90 and 0.5780 shares per unit if the price is equal to or less than $43.25. For market prices between those values the settlement rate will be $25 divided by the market value. The senior note is due 8/16/2007 and is subject to reset and remarketing on the third business day prior to 5/16/2005. The Equity Security Units pay quarterly distributions of 8.75% ($2.1875) per annum on 2/16, 5/16, 8/16 & 11/16 to holders of record one business day prior to the payment date while the securities remain in book-entry form. The senior notes are pledged as collateral to secure the holder's obligations under the stock purchase contract. The holder has the right at any time to convert the normal units to stripped units by the substitution of a specified zero-coupon U.S. Treasury security for the senior notes and to later recreate normal units. The senior notes are unsecured and rank equally with the company's other unsecured senior indebtedness. See the IPO prospectus for extensive additional information on the equity units and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.
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Stock Exchange |
Cpn Rate Ann Amt |
LiqPref CallPrice |
Call Date Matur Date |
Moodys/S&P Dated |
Conversion Shares@Price |
Distribution Dates |
15% Tax Rate |
NYSE
Chart
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8.75%
$2.1875
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$25.00
N/A
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8/16/2005
8/16/2007
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Baa2
BBB-
6/19/2005
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0.4817@$51.90+
0.5780@$43.25-
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2/16, 5/16, 8/16 & 11/16
Click for MW ExDiv Date
Click for Yahoo ExDiv Date
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No
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Go to Parent Company's Record (DTE)
Notes: Aug. 15, 2005 -- DTE Energy today announced the settlement rate for the purchase contracts that form a part of its 8.75 percent Equity Security Units. On Aug. 16, 2005, holders of Equity Security Units will receive 0.5343 shares of DTE Energy common stock for each purchase contract portion of the Equity Security Units. This settlement rate is based on the average closing price of DTE Energy common stock on the New York Stock Exchange for the 20 consecutive trading days ending Aug. 11, 2005. The average closing price for this 20-day period was $46.79. The Equity Security Unit holders' purchase obligation under the purchase contracts will be satisfied from the proceeds of a portfolio of U.S. Treasury securities held in a collateral account that matures Aug. 15, 2005. The portfolio of U.S. Treasury securities was acquired in connection with the remarketing of DTE Energy's Senior Notes due Aug. 16, 2007 that were formerly part of the Equity Security Units. Settlement of the purchase contracts will result in DTE Energy issuing approximately 3.68 million shares of common stock in exchange for approximately $172 million of proceeds. As a result of the settlement of the purchase contract component of the Equity Security Units, the Equity Security Units will cease trading on the New York Stock Exchange before the opening of the market on Aug. 16, 2005.
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IPO - 6/20/2002 - 6.00 Million Units @ $25.00/unit.
Link to IPO Prospectus
Market Value $156.0 Million
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Company's Online Information Links
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| Company's Online SEC EDGAR Filings |
| Company's Email Address Links |
| Address and Phone Numbers |
| Address: One Energy Plaza, Detroit, Michigan 48226 |
| Main Phone Number |
313-235-4000 |
| Fax Number |
313-235-0611 |
| Investor Relations
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313-235-8030
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| Toll Free Phone Number |
800-551-5009 |
| CEO - Gerard M. Anderson |
CFO - David E. Meador |
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