DTE Energy Company (DTW) issued 5.25% Junior Subordinated Debentures due 2077 in 2017. The debentures have a liquidation preference of $25 per share and are listed on the NYSE under the symbol DTW. The debentures are unsecured and subordinated obligations of DTE Energy Company, which means that they have a lower priority in the company's capital structure compared to other debt and are subordinate to all of the company's senior indebtedness, including the company's first mortgage bonds and other indebtedness.
The debentures pay interest semi-annually on March 15 and September 15 of each year, beginning on September 15, 2017. The debentures are redeemable at the option of DTE Energy Company, in whole or in part, at any time on or after September 15, 2022, at a redemption price equal to the liquidation preference plus any accrued and unpaid interest. The debentures may also be redeemed in whole, but not in part, prior to September 15, 2022, upon the occurrence of certain events.
Investors should carefully consider the risks associated with investing in DTW debentures, including the subordinated and unsecured nature of the debentures, which means that they are subject to greater credit risk than other, more senior debt securities issued by the company. Investors should also consider the interest rate risk associated with these debentures, as changes in market interest rates could impact the value of the debentures.
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