Long-Term Debt

6 Months Ended

Jun. 30, 2021

LONG-TERM DEBT

Debt Issuances

In 2021, the following debt was issued:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	March	Mortgage bonds(a)	1.90%	2028	$	575
DTE Electric	March	Mortgage bonds(a)	3.25%	2051	425
DT Midstream	June	Senior notes(b)	4.125%	2029	1,100
DT Midstream	June	Senior notes(b)	4.375%	2031	1,000
DT Midstream	June	Term loan facility(b)	Variable(c)	2028	1,000

					$	4,100

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(a)Bonds were issued as Green Bonds and the proceeds will be used to finance qualified expenditures for solar and wind energy, payments under power purchase agreements for solar and wind energy, and energy optimization programs.

(b)Proceeds were used for the repayment of short-term borrowings due to DTE Energy to facilitate the separation of DT Midstream, as well as a one-time special dividend provided to DTE Energy. The debt will remain with DT Midstream following its separation on July 1, 2021. Refer to Note 4 to the Consolidated Financial Statements, “Dispositions and Impairments,” for additional information and to the Debt Redemptions section below for DTE Energy's use of the proceeds received from DT Midstream.

(c)Variable rate is LIBOR plus 2.00%, where LIBOR will not be less than 0.50%. The term loan facility includes $900 million with a six-month LIBOR interest period and $100 million with a three-month LIBOR interest period.

Debt Redemptions

Through June 2021, the following debt was redeemed:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Electric	April	Mortgage bonds	3.90%	2021	$	250
DTE Electric	May	Mortgage bonds	7.00%	2021	33
DTE Energy	June	Junior subordinated debentures(a)	5.375%	2076	300

					$	583

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(a)Early redemption resulted in a loss on extinguishment of debt of $8 million relating to the write-off of unamortized issuance costs. The loss was recorded to Other expenses on DTE Energy's Consolidated Statements of Operations for the three and six months ended June 30, 2021.

In July 2021, DTE Energy used proceeds from DT Midstream’s repayment of short-term borrowings and one-time special dividend to optionally redeem $2.2 billion of additional long-term debt, including the following:


Company	Month	Type	Interest Rate	Maturity Date	Amount
					(In millions)
DTE Energy	July	Senior notes	3.30%	2022	$	300
DTE Energy	July	Senior notes	2.60%	2022	300
DTE Energy	July	Senior notes	3.70%	2023	600
DTE Energy	July	Senior notes	3.85%	2023	135
DTE Energy	July	Senior notes	3.50%	2024	350
DTE Energy	July	Senior notes	3.80%	2027	350
DTE Energy	July	Senior notes	3.40%	2029	21
DTE Energy	July	Senior notes	6.375%	2033	191
					$	2,247

Additionally in July 2021, DTE Energy provided notice of its intent to call for redemption $165 million of its 3.85% Senior notes due in 2023 and $209 million of its 6.375% Senior notes due in 2033, both to be redeemed in August 2021 using the remaining proceeds received from DT Midstream.

To early retire this debt and reduce future interest expense, DTE Energy incurred prepayment costs of $235 million in July 2021 and expects additional prepayment costs in conjunction with the planned redemptions in August 2021. Prepayment costs and any write-offs of unamortized issuance costs and discounts related to the retired debt will result in a loss on extinguishment of debt to be reflected in the Consolidated Statements of Operations for the third quarter 2021.