...October 28, 2019 NEW YORK (S&P Global Ratings) Oct. 28, 2019--S&P Global Ratings today assigned its '###-' issue-level rating to DTE Energy Co.'s (DTE's) proposed equity units. The equity units consist of a purchase contract that obligates the owners of the units to purchase DTE's common stock as of November 2022. We have assigned high equity credit (100% equity treatment) to the issuance because of the mandatory convertible feature that requires the issuance of common equity within a three-year period. The company intends to use the net proceeds from the equity units to finance its Haynesville midstream asset acquisition. We rate the equity units two notches below our '###+' issuer credit rating on DTE, which reflects the subordination and deferability on the instruments for the first three years. The rating applies to the company's obligation to service the debt component, as well as its obligation to issue common shares under the forward contract. It does not address the safety of principal...
