Long-Term Debt

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Long-Term Debt

LONG-TERM DEBT

Debt Issuances

In 2016, the following debt was issued:

Company	Month	Type	Interest Rate	Maturity	Amount
					(In millions)
DTE Electric	May	Mortgage Bonds	3.70%	2046	$	300
DTE Energy	May	Junior Subordinated Debentures	5.375%	2076	300
					$	600

Debt Redemptions

In 2016, the following debt was redeemed:

Company	Month	Type	Interest Rate	Maturity	Amount
					(In millions)
DTE Electric	March	Mortgage Bonds	7.904%	2016	$	10
DTE Energy	June	Senior Notes	6.35%	2016	300
DTE Energy	Various	Other Long-Term Debt	Various	2016	12
					$	322

Remarketed Bonds

In August 2016, DTE Electric repurchased $59 million of 5.50% Tax Exempt Revenue Bonds. In September 2016, DTE Electric reissued the $59 million of Tax Exempt Revenue Bonds in a long-term mode at 1.45% for a five-year term. The final maturity is August 1, 2029.

In September 2016, DTE Electric remarketed $82 million of Tax Exempt Revenue Bonds in a long-term mode at 1.45% for a five-year term. The final maturity is September 1, 2030.

Acquisition Financing

On October 20, 2016, DTE Energy closed on the purchase of gathering assets for a total purchase price of $1.3 billion. The acquisition was financed through the issuance of Equity Units and Senior Notes. See Note 13 to the Consolidated Financial Statements, "Subsequent Events," for more information on the acquisition.

In October 2016, DTE Energy issued $675 million of 2016 6.50% Equity Units, initially in the form of Corporate Units. The Corporate Units are listed on the New York Stock Exchange under the symbol DTV. The proceeds from the Equity Units were used for the acquisition.

Each Corporate Unit consists of a stock purchase contract and 1/20 interest in an RSN issued by DTE Energy. The stock purchase contracts obligate the holders to purchase shares of DTE Energy common stock on October 1, 2019. The purchase price to be paid under the stock purchase contracts is $50 per Corporate Unit, and the number of shares to be purchased will be determined under a formula based upon the average closing price of DTE Energy common stock near the settlement date. The RSNs are pledged as collateral to secure the purchase of common stock under the related stock purchase contracts.

DTE Energy will make quarterly interest payments on the RSNs and quarterly contract adjustment payments on the stock purchase contracts, at the rates described below. DTE Energy may defer payments on the stock purchase contracts for one or more consecutive periods but not beyond the purchase contract settlement date. Under the terms of the stock purchase contracts, assuming no anti-dilution or other adjustments, DTE Energy will issue between 5.8 million and 7.3 million shares of its common stock in October 2019. A total of 9 million shares of DTE Energy’s common stock have been reserved for issuance in connection with the stock purchase contracts.

Selected information about DTE Energy’s 2016 Equity Units is presented below:

Issuance Date	Units Issued	Total Net Proceeds		Total Long-Term Debt		RSN Annual Interest Rate	Stock Purchase Contract Annual Rate	Stock Purchase Settlement Date	RSN Maturity Date
(In millions, except interest rates)
10/05/2016	13.5	$	654	$	675	1.5%	5.0%	10/01/2019	10/01/2024

In October 2016, DTE Energy issued $400 million of 2016 Series D 1.50% Senior Notes due 2019 and $600 million of Series E 2.85% Senior Notes due 2026. The proceeds from the Senior Notes were used for the acquisition and general corporate purposes.