QUANTUMONLINE.COM SECURITY DESCRIPTION: DTE Energy Co., Series E 5.25% Junior Subordinated Debentures due 12/1/2077, issued in $25 denominations, redeemable at the issuer's optionon or after 12/1/2022 at $25 per share plus accrued and unpaid interest, and maturing 12/1/2077. Interest distributions of 5.25% per annum ($1.3125 per annum or $0.328125 per quarter) will be paid quarterly on 3/1, 6/1, 9/1 & 12/1 to holders of record on the record date that will be 15 calendar days prior to the payment date (NOTE: the ex-dividend date is at least one business day prior to the record date).
The company may, on one or more occasions, defer dividend payments for up to 40 consecutive quarters unless an event of default occurs.
Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders.
If a tax event occurs anytime before 12/1/2022 the issuer may redeem the debentures at a redemption price equal to 101% of the principal amoun plus accrued and unpaid interest (see prospectus for further details). If a rating agency event occurs anytime before 12/1/2022 the issuer may redeem the debentures at a redemption price equal to 102% of the principal amoun plus accrued and unpaid interest (see prospectus for further details).
Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest.
This security was rated as Baa2 by Moody’s and BBB- by S&P at the date of its IPO. The junior subordinated debentures are unsecured, subordinated obligations of the company and will rank equally with all existing and future unsecured, subordinated indebtedness of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
