GlobeNewswire Inc | Jun 28, 2021 05:22PM EDT

June 28, 2021

Detroit, June 28, 2021 (GLOBE NEWSWIRE) -- DTE Energy Company (NYSE: DTE) (the Company, DTE or DTE Energy) today announced the pricing terms of its previously announced tender offers (the Any-and-All Tender Offers) to purchase for cash any and all of its notes described in the first table below (the Any-and-All Notes), and tender offers (the Maximum Tender Offers and, together with the Any-and-All Tender Offers, the Tender Offers) to purchase for cash up to $350,000,000 combined aggregate purchase price (the Maximum Purchase Price) of certain of its debt securities (collectively, the Maximum Tender Notes and, together with the Any-and-All Notes, the Notes), in the priorities (the Acceptance Priority Levels) set forth in the second table below.

The Total Consideration for each series of Notes validly tendered and not validly withdrawn as of 5:00 p.m., New York City time, on June 28, 2021 (the Early Tender Deadline) that are accepted for purchase pursuant to the Tender Offers was determined by reference to the applicable fixed spread (the Fixed Spread) specified for such series of Notes over the yield (the Reference Yield) based on the bid-side price of the applicable U.S. Treasury Security (the Reference U.S. Treasury Security) specified for each series of Notes, as calculated by the Dealer Managers and Solicitation Agents (as defined below) at 2:00 p.m., New York City time, on June 28, 2021 (such time and date, the Price Determination Time). The Total Consideration includes an early tender premium of $30.00 per $1,000 principal amount of Notes (the Early Tender Premium). Subject to the satisfaction or waiver of the conditions to the Tender Offers and the Consent Solicitations (as defined below), including the Financing Condition and the Spin-Off Condition (each as defined below), and, with respect to the Maximum Tender Notes, subject to the Maximum Tender Amount, the applicable Acceptance Priority Levels and proration (as applicable), holders of Notes that are validly tendered and not validly withdrawn at or prior to the Early Tender Deadline and accepted for purchase will receive the applicable Total Consideration, which includes the Early Tender Premium. The Company expects to accept such Notes for purchase on a date (the Early Acceptance Date) promptly following the satisfaction or waiver of the conditions to the Tender Offers and the Consent Solicitations and expects to purchase such accepted Notes promptly following the Early Acceptance Date (such date of purchase, the Early Settlement Date). The Company expects that the Early Settlement Date will be July 1, 2021. Holders of Any-and-All Notes who validly tender their Any-and-All Notes and thereby validly deliver their Consents (as defined below) following the Early Tender Deadline and at or prior to the Expiration Time (as defined below) will only receive the applicable Tender Offer Consideration, which is an amount equal to the applicable Total Consideration minus the Early Tender Premium, per $1,000 principal amount of any such Any-and-All Notes accepted for purchase.

The Tender Offers and, with respect to the Any-and-All Tender Offers, the related solicitations (the Consent Solicitations) of consents (Consents) are being made solely pursuant to, and are subject to the terms and conditions set forth in, the offer to purchase and consent solicitation statement, dated June 14, 2021 (the Offer to Purchase), and a related letter of transmittal and consent (the Letter of Transmittal).

Any-and-All Tender Offers

The Company is offering to purchase for cash any and all of the Any-and-All Notes, as described in the following table:

Reference Fixed TotalTitle of CUSIP Principal U.S. Bloomberg Spread Early ConsiderationSecurity Number Amount Treasury Reference (basis Tender (per $1,000) Outstanding Security Page(2) points) Premium (4) (1) (3) (per $1,000)3.30%Senior 2.250%Notes 233331AV9 $300,000,000 due 4/15/ PX3 +20 bps $30.00 $1,023.73due 20222022*2.60% 1.750% Senior 233331BB2 $300,000,000 due 6/15/ PX3 +15 bps $1,022.38Notes 2022 $30.00due 20223.70%Senior 1.375% Notes 233331BA4 $600,000,000 due 6/30/ PX5 +15 bps $1,065.55due 2023 $30.002023*3.85% 2.125% Senior 233331AR8 $300,000,000 due 11/30 PX5 +20 bps $1,079.49Notes /2023 $30.00due 20233.50% 2.000% Senior 233331AS6 $350,000,000 due 5/31/ PX5 +15 bps $1,083.96Notes 2024 $30.00due 20246.375% 1.625% Senior 233331AJ6 $400,000,000 due 5/15/ PX1 +20 bps $1,500.60Notes 2031 $30.00due 2033

* Denotes a series of Any-and-All Notes for which the Total Consideration and the Tender Offer Consideration was determined taking into account the par call date, and not the maturity date, of such Any-and-All Notes in accordance with the indenture for such series of Any-and-All Tender Notes and standard market practice.



(1) UST denotes a U.S. Treasury Security.

(2) The applicable page on Bloomberg from which the Dealer Managers and Solicitation Agents will quote the bid-side price of the Reference U.S. Treasury Security.

(3) The Fixed Spread includes the Early Tender Premium (as defined below).

(4) The Total Consideration is inclusive of the Early Tender Premium but exclusive of accrued interest and is based on the Reference Yield of the Reference U.S. Treasury Security as of the Price Determination Time and an assumed settlement date of July 1, 2021.

Maximum Tender Offers

The Company is offering to purchase for cash up to the Maximum Purchase Price of the Maximum Tender Notes, in the priorities set forth in the following table:

Reference Fixed Early TotalTitle of CUSIP Principal Acceptance U.S. Bloomberg Spread Tender ConsiderationSecurity Number Amount Priority Treasury Reference (basis Premium (per $1,000) Outstanding Level Security Page(2) points) (per (4) (1) (3) $1,000)3.80%Senior 0.750%Notes 233331AZ0 $500,000,000 1 due 5/31/ PX1 +55 bps $30.00 $1,124.12due 20262027*3.40%Senior 1.625%Notes 233331BC0 $500,000,000 2 due 5/15/ PX1 +42 bps $30.00 $1,107.29due 20312029*2.85%Senior 0.750%Notes 233331AY3 $600,000,000 3 due 5/31/ PX1 +45 bps $30.00 $1,073.44due 20262026*2.95%Senior 1.625%Notes 233331BF3 $300,000,000 4 due 5/15/ PX1 +62 bps $30.00 $1,065.50due 20312030*1.05%Senior 0.750%Notes 233331BG1 $800,000,000 5 due 5/31/ PX1 +15 bps $30.00 $1,000.86due 20262025*

* Denotes a series of Maximum Tender Notes for which the Total Consideration and the Tender Offer Consideration was determined taking into account the par call date, and not the maturity date, of such Maximum Tender Notes in accordance with the indenture for such series of Maximum Tender Notes and standard market practice.



(1) UST denotes a U.S. Treasury Security.

(2) The applicable page on Bloomberg from which the Dealer Managers and Solicitation Agents will quote the bid-side prices of the applicable Reference U.S. Treasury Security.

(3) The Fixed Spread includes the Early Tender Premium.

(4) The applicable Total Consideration is inclusive of the Early Tender Premium but exclusive of accrued interest and is based on the Reference Yield of the applicable Reference U.S. Treasury Security as of the Price Determination Time and an assumed settlement date of July 1, 2021.

The Tender Offers and the Consent Solicitations are subject to the satisfaction or waiver of certain conditions, including the Financing Condition and the Spin-Off Condition. The Company must have (a) consummated its anticipated distribution of all shares of common stock of its wholly owned subsidiary DT Midstream, Inc. (DT Midstream) on a pro rata basis to the holders of the Companys common stock (the Spin-Off Condition) and (b) received proceeds of certain debt financings by DT Midstream prior to consummation of such distribution sufficient to pay (i) the Total Consideration with respect to the aggregate principal amount outstanding of the Any-and-All Notes, regardless of the actual amount of Any-and-All Notes tendered, plus accrued interest, (ii) the Total Consideration with respect to the Maximum Purchase Price of the Maximum Tender Notes, regardless of the actual amount of Maximum Tender Notes tendered, plus accrued interest, and (iii) applicable fees and expenses relating to the Tender Offers and the Consent (collectively, the Financing Condition).

The purchase of any series of Notes is not conditioned upon the purchase of any other series of Notes; provided that the Companys obligation to accept for purchase any Maximum Tender Notes validly tendered in the Maximum Tender Offers is subject to the Maximum Purchase Price, the applicable Acceptance Priority Levels and may be subject to proration, each as more fully described herein.

Information Relating to the Tender Offers and Consent Solicitations

The Offer to Purchase and the related Letter of Transmittal were distributed to holders on June 14, 2021. Barclays Capital Inc. and Wells Fargo Securities, LLC are the dealer managers for the Tender Offers and solicitation agents for the Consent Solicitations (the Dealer Managers and Solicitation Agents). Investors with questions regarding the Tender Offers and the Consent Solicitations may contact Barclays Capital Inc. at (800) 438-3242 (toll-free) or (212) 528-7581 (collect) or Wells Fargo Securities, LLC at (866) 309-6316 (toll-free) or (704)410-4756 (collect). D.F. King & Co., Inc. is the tender agent and information agent (the Tender/Information Agent) for the Tender Offers and the Consent Solicitations and can be contacted by calling toll-free at (866) 829-1035 (banks and brokers may call collect at (212) 269-5550) or by email at dte@dfking.com.

None of the Company or its board of directors, the Dealer Managers and Solicitation Agents, the Tender/Information Agent or the Trustee is making any recommendation as to whether Holders should tender any Notes in response to the Tender Offers or deliver Consents pursuant to the Consent Solicitations, and neither the Company nor any such other person has authorized any person to make any such recommendation. Holders must make their own decision as to whether to tender any of their Notes (and, with respect to the Any-and-All Notes, deliver their Consents) and, if so, the principal amount of Notes as to which action is to be taken.

This press release is for informational purposes only and is not an offer to buy, or the solicitation of an offer to sell, any of the Notes or a solicitation of Consents. The full details of the Tender Offers and the Consent Solicitations, including instructions on how to tender Notes and deliver Consents, are included in the Offer to Purchase and the Letter of Transmittal. Holders are strongly encouraged to read carefully the Offer to Purchase and the Letter of Transmittal and materials the Company has filed with the Securities and Exchange Commission and incorporated by reference therein, because they contain important information.

Holders may obtain copies of the Offer to Purchase and the Letter of Transmittal, free of charge, from the Tender/Information Agent in connection with the Tender Offers and the Consent Solicitations, by calling toll-free at (866) 829-1035 (banks and brokers may call collect at (212) 269-5550) or by email at dte@dfking.com. Holders are urged to carefully read the Offer to Purchase and the Letter of Transmittal prior to making any decisions with respect to the Tender Offers and the Consent Solicitations.

About DTE Energy Company

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. DTE is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy and economic progress.

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 Energys and DT Midstreams estimates of future prospects, and actual results may differ materially. This release contains forward-looking statements about DTE Energys intent to spin-off DT Midstream and DTE Energys preliminary strategic, operational and financial considerations related thereto. The statements with respect to the separation transaction are preliminary in nature and subject to change as additional information becomes available. The separation transaction will be subject to the satisfaction of a number of conditions and there is no assurance that such separation transaction will in fact occur. Many factors impact forward-looking statements including, but not limited to, the following: risks related to the spinoff of DT Midstream, including that the process of completing the transaction could disrupt or adversely affect the consolidated or separate businesses, results of operations and financial condition, that the transaction may not achieve some or all of any anticipated benefits with respect to either business, and that the transaction may not be completed in accordance with DTE Energys expected plans or anticipated timelines, or at all; the duration and impact of the COVID-19 pandemic on DTE Energy and customers, impact of regulation by the EPA, the EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, 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 our 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 Energys gas storage and pipelines operations and the volatility in the short-term natural gas storage markets impacting third-party storage revenues related to DTE Energy; impact of volatility in prices in the international steel markets on DTE Energys 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 commodity markets, deviations in weather, and related risks impacting the results of DTE Energys 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 DTE Energys public filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This document should also be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric Company (DTE Electric) 2020 Form 10-K and 2021 Form 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.

Pete TernesDTE Energy313.235.5555