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DETROIT - DTE Energy Company (NYSE:DTE), a utility company with a market capitalization of $27.95 billion, announced Monday it has priced an offering of $600 million aggregate principal amount of 2025 Series H 6.25% Junior Subordinated Debentures due October 1, 2085. According to InvestingPro data, the company currently operates with a significant debt burden, with total debt reaching approximately $24 billion as of the latest quarter.
The sale of the junior subordinated notes is expected to settle on September 17, 2025, subject to customary closing conditions. The Detroit-based energy company plans to use the net proceeds for repayment of short-term borrowings and general corporate purposes. The company has demonstrated strong financial management, maintaining dividend payments for 55 consecutive years, with a current dividend yield of 3.19%.
BofA Securities, J.P. Morgan Securities, Morgan Stanley, and Wells Fargo Securities are serving as joint book-running managers for the offering, with Comerica Securities and Huntington Securities acting as co-managers.
The offering is being made under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission.
DTE Energy operates electric and natural gas utilities serving 2.3 million electric customers in Southeast Michigan and 1.3 million natural gas customers across Michigan. The company’s portfolio also includes businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading.
This information is based on a press release statement from DTE Energy.
In other recent news, DTE Energy reported second-quarter 2025 earnings with operating earnings of $283 million or $1.36 per share, missing analysts’ expectations of $1.48 per share. The revenue forecast for the quarter was $2.65 billion, although actual revenue figures were not disclosed. In legal developments, the U.S. District Court for the Eastern District of Michigan granted partial summary judgment against DTE Energy’s subsidiary, EES Coke Battery, LLC, in an environmental case related to the Clean Air Act. The case involves allegations from the EPA and DOJ regarding non-compliance with federal air standards and excessive sulfur dioxide emissions.
On the analyst front, BMO Capital raised its price target for DTE Energy to $144 from $140, maintaining a Market Perform rating. UBS reiterated its Buy rating with a $148 price target, despite concerns over a Michigan Public Service Commission Staff recommendation that suggested a lower-than-requested rate base. Mizuho increased its price target to $151 from $145, citing growth potential in data centers, while maintaining an Outperform rating. These updates reflect a range of perspectives on DTE Energy’s current and future financial performance.
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