DT Midstream Announces Closing of Offering of Senior Secured Notes
DT Midstream (NYSE: DTM) has successfully closed its previously announced offering of $650 million of 5.800% Senior Secured Notes due 2034. The Notes are guaranteed by certain DT Midstream subsidiaries and secured by first priority liens on specific company assets.
The proceeds from this offering, combined with proceeds from a recent common stock offering, revolving credit facility borrowings, and cash on hand, will fund the pending acquisition of Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company, and Viking Gas Transmission Company from ONEOK Partners Intermediate Partnership and Border Midwestern Company.
The Notes were privately placed to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act of 1933.
DT Midstream (NYSE: DTM) ha concluso con successo la sua offerta precedentemente annunciata di 650 milioni di dollari di Note Senior Secured con un tasso del 5,800% in scadenza nel 2034. Le Note sono garantite da alcune filiali di DT Midstream e sono assicurate da pegni di prima priorità su specifici beni aziendali.
I proventi di questa offerta, insieme ai proventi di una recente offerta di azioni ordinarie, prestiti di linee di credito rotative e liquidità disponibile, finanzieranno l'acquisizione imminente di Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company e Viking Gas Transmission Company da ONEOK Partners Intermediate Partnership e Border Midwestern Company.
Le Note sono state collocate privatamente a investitori istituzionali qualificati ai sensi della Regola 144A e a persone non statunitensi ai sensi del Regolamento S del Securities Act del 1933.
DT Midstream (NYSE: DTM) ha cerrado con éxito su oferta previamente anunciada de 650 millones de dólares de Notas Senior Aseguradas con una tasa del 5.800% que vencen en 2034. Las Notas están garantizadas por ciertas subsidiarias de DT Midstream y están aseguradas por gravámenes de primera prioridad sobre activos específicos de la empresa.
Los ingresos de esta oferta, junto con los ingresos de una reciente oferta de acciones comunes, préstamos de líneas de crédito renovables y efectivo disponible, financiarán la adquisición pendiente de Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company y Viking Gas Transmission Company de ONEOK Partners Intermediate Partnership y Border Midwestern Company.
Las Notas se colocaron privadamente a compradores institucionales calificados bajo la Regla 144A y a personas no estadounidenses bajo la Regulación S de la Ley de Valores de 1933.
DT Midstream (NYSE: DTM)는 이전에 발표한 6억 5천만 달러의 5.800% 선순위 보장 노트 발행을 성공적으로 마감했습니다. 이 노트는 특정 DT Midstream 자회사가 보증하며 특정 회사 자산에 대한 1순위 담보로 담보되어 있습니다.
이번 발행으로 인한 수익은 최근의 보통주 발행, 회전 신용 대출, 현금 보유분과 함께 Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company, Viking Gas Transmission Company의 인수를 ONEOK Partners Intermediate Partnership 및 Border Midwestern Company로부터 자금을 조달하는 데 사용됩니다.
이 노트는 규칙 144A에 따라 자격을 갖춘 기관 투자자들에게 비공식적으로 배정되었고, 1933년 증권법의 규정 S에 따라 비미국인에게도 배정되었습니다.
DT Midstream (NYSE: DTM) a réussi à clore son offre précédemment annoncée de 650 millions de dollars d'Obligations Senior Sécurisées à 5,800% arrivant à échéance en 2034. Les obligations sont garanties par certaines filiales de DT Midstream et sont sécurisées par des droits de priorité sur des actifs spécifiques de l'entreprise.
Les recettes de cette émission, combinées aux recettes d'une récente offre d'actions ordinaires, aux emprunts de la ligne de crédit renouvelable et aux liquidités disponibles, financeront l'acquisition en attente de Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company et Viking Gas Transmission Company auprès de ONEOK Partners Intermediate Partnership et Border Midwestern Company.
Les Obligations ont été placées de manière privée auprès d'acheteurs institutionnels qualifiés conformément à la Règle 144A et à des personnes non américaines conformément à la Réglementation S du Securities Act de 1933.
DT Midstream (NYSE: DTM) hat erfolgreich die bereits angekündigte Platzierung von 650 Millionen Dollar von 5,800% Senior Secured Notes mit Fälligkeit im Jahr 2034 abgeschlossen. Die Notes sind von bestimmten Tochtergesellschaften von DT Midstream garantiert und durch vorrangige Sicherheiten auf spezifische Unternehmenswerte gesichert.
Die Erlöse aus dieser Platzierung, zusammen mit den Erträgen aus einem kürzlich erfolgten Angebot von Stammaktien, Abrufkrediten und verfügbaren liquiden Mitteln, werden die bevorstehende Übernahme von Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company und Viking Gas Transmission Company von ONEOK Partners Intermediate Partnership und Border Midwestern Company finanzieren.
Die Notes wurden privat an qualifizierte institutionelle Käufer gemäß Regel 144A und an Nicht-US-Personen gemäß der Verordnung S des Securities Act von 1933 platziert.
- Successfully raised $650 million through senior secured notes offering
- Strategic acquisition funding secured through multiple sources
- Notes backed by first priority liens on company assets
- Increased debt burden with 5.800% interest rate through 2034
- Potential dilution from recent common stock offering
- Additional leverage through revolving credit facility borrowings
Insights
The
The first-priority lien security structure and subsidiary guarantees enhance the notes' credit profile, potentially leading to more favorable pricing. The Rule 144A/Reg S format targets sophisticated institutional investors while providing flexibility in execution. This debt issuance represents a important component of DTM's expansion strategy in the midstream sector, particularly strengthening its interstate pipeline portfolio through the Guardian, Midwestern and Viking assets acquisition.
This debt offering strategically positions DT Midstream to expand its interstate natural gas transmission footprint. The acquisition target assets - Guardian, Midwestern and Viking pipelines - serve critical transportation routes in the Midwest, offering stable, regulated returns. The financing structure suggests careful consideration of the company's leverage metrics and cost of capital optimization.
The secured nature of the notes and the involvement of institutional investors indicates strong market confidence in DTM's business model and growth strategy. The
DETROIT, Dec. 06, 2024 (GLOBE NEWSWIRE) -- DT Midstream, Inc. (“DT Midstream” or the “Company”) (NYSE: DTM) today announced that it has closed the previously announced offering (the “Offering”) of
DT Midstream intends to use the net proceeds from the sale of the Notes, together with the proceeds from its recently completed offering of common stock, borrowings under its revolving credit facility and cash on hand, to fund the consideration payable by DT Midstream in the previously announced, pending acquisition of all of the equity interests in Guardian Pipeline, L.L.C., Midwestern Gas Transmission Company and Viking Gas Transmission Company from ONEOK Partners Intermediate Limited Partnership and Border Midwestern Company (the “Pending Acquisition”).
The Notes were sold in a private placement to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States under Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
About DT Midstream
DT Midstream (NYSE: DTM) is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The Company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, including a goal of achieving
Forward-Looking Statements
This release contains statements which, to the extent they are not statements of historical or present fact, constitute “forward-looking statements” under the securities laws. Forward-looking statements can be identified by the use of words such as “believe,” “expect,” “expectations,” “plans,” “intends,” “continues,” “forecasts,” “goals,” “strategy,” “prospects,” “estimate,” “project,” “scheduled,” “target,” “anticipate,” “could,” “may,” “might,” “will,” “should,” “see,” “guidance,” “outlook,” “confident” and other words of similar meaning. The absence of such words, expressions or statements, however, does not mean that the statements are not forward-looking.
Forward-looking statements are not guarantees of future results and conditions, but rather are subject to numerous assumptions, risks, and uncertainties that may cause actual future results to be materially different from those contemplated, projected, estimated, or budgeted. This release contains forward-looking statements about DT Midstream’s intended use of proceeds and the Pending Acquisition. For additional discussion of risk factors which may affect DT Midstream’s results, please see the discussion under the section entitled “Risk Factors” in our Annual Report on Form 10-K and any other reports filed with the SEC.
The above list of factors is not exhaustive. New factors emerge from time to time. DT Midstream cannot predict what factors may arise or how such factors may cause actual results to vary materially from those stated in forward-looking statements. Given the uncertainties and risk factors that could cause our actual results to differ materially from those contained in any forward-looking statement, you should not put any undue reliance on any forward-looking statements.
Any forward-looking statements speak only as of the date on which such statements are made. We are under no obligation to, and expressly disclaim any obligation to, update or alter our forward-looking statements, whether as a result of new information, subsequent events or otherwise.
FAQ
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