DTE Energy 2007 Annual Report Download - page 21

NOTE 6 – LONG-TERM DEBT AND PREFERRED SECURITIES
Long-Term Debt
Our long-term debt outstanding and interest rates of debt outstanding at December 31 were:
(in Millions) 2007 2006
First Mortgage Bonds, interest payable semi-annually
7.21% series due 2007 $ — $ 30
7.06% series due 2012 40 40
8.25% series due 2014 80 80
Remarketable securities, interest payable semi-annually
6.45% series due 2038 75 75
Senior notes, interest payable semi-annually
6.125% series due 2008 200 200
5.0% series due 2019 120 120
5.7% series due 2033 200 200
715 745
Less amount due within one year (275) (30)
Total $ 440 $ 715
Our remarketable securities and senior notes are secured by “fall-away mortgage” debt and, as such, are secured debt as long as our
other first mortgage bonds are outstanding and become senior unsecured debt thereafter.
Substantially all of our net utility property is subject to the lien of our mortgage. Should we fail to timely pay our indebtedness under
the mortgage, such failure may create cross defaults in the indebtedness of DTE Energy.
The following table shows the scheduled debt maturities and sinking fund requirements, excluding any unamortized discount or
premium on debt:
(in Millions)
2008 2009 2010 2011 2012
2013 and
thereafter Total
Amount to mature $ 275 $— $— $— $ 40 $ 400 $ 715
Debt Retirements and Redemptions
In May 2007, we retired at maturity $30 million of First Mortgage Bonds bearing 7.21% interest.
Remarketable Securities
At December 31, 2007, $75 million of MichCon notes were subject to periodic remarketings. The notes are subject to mandatory or
optional tender on June 30, 2008. The Company directs the remarketing agents to remarket these securities at the lowest interest rate
necessary to produce a par bid. In the event that a remarketing fails, the Company would be required to purchase the securities.
Preferred and Preference Securities – Authorized and Unissued
At December 31, 2007, we had 7 million shares of preferred stock with a par value of $1 per share and 4 million shares of preference
stock with a par value of $1 per share authorized, with no shares issued.
NOTE 7 – SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
In October 2005, we entered into a $181 million, five-year unsecured revolving credit agreement and simultaneously amended our
existing $244 million, five-year facility entered into in October 2004. Our aggregate availability under the combined facilities is $425
million. The five-year credit facilities are with a syndicate of banks and may be used for general corporate borrowings, but are
intended to provide liquidity support for our commercial paper program. Borrowings under the facilities are available at prevailing
short-term interest rates. The agreements require us to maintain a debt to total capitalization ratio of no more than 0.65 to l. Should we
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