DT Midstream Announces Closing of Private Offering of Senior Secured Notes

Rhea-AI Summary

DT Midstream has successfully closed a $600 million offering of 4.300% Senior Secured Notes due 2032. The proceeds are allocated to partially repay existing term loan indebtedness, maintaining leverage neutrality. The Notes were privately placed under Rule 144A and Regulation S of the Securities Act, with no registration in the U.S. The company operates natural gas infrastructure, committed to achieving net zero greenhouse gas emissions by 2050, targeting a 30% reduction in the next decade.

Positive

• Completion of $600 million Senior Secured Notes offering.
• Use of funds to reduce existing indebtedness, enhancing financial stability.
• Leverage-neutral transaction supporting long-term financial health.

Negative

• Notes not registered under the Securities Act, limiting trading options.
• Potential market dilution concerns related to future offerings.

DETROIT, April 11, 2022 (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 $600,000,000 of 4.300% Senior Secured Notes due 2032 (the “Notes”). The Notes were issued by DT Midstream, guaranteed by certain of DT Midstream’s subsidiaries and secured by a first priority lien on certain assets of DT Midstream and its subsidiary guarantors that secure DT Midstream’s existing credit facilities.

DT Midstream used the net proceeds from the sale of the Notes to partially repay existing indebtedness under its term loan facility and the transaction is leverage-neutral.

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 target of achieving 30% of its carbon emissions reduction in the next decade.

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. 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.

Contact

Todd Lohrmann, DT Midstream, 313.774.2424

investor_relations@dtmidstream.com

FAQ

What are the details of the $600 million offering by DTM?

DT Midstream closed a $600 million offering of 4.300% Senior Secured Notes due 2032, aimed at repaying existing debt.

How will the funds from DTM's offering be used?

The net proceeds will be used to partially repay existing indebtedness under its term loan facility.

What is the maturity date of the Senior Secured Notes offered by DTM?

The Senior Secured Notes mature in 2032.

What does leverage-neutral mean in relation to DTM's offering?

Leverage-neutral means that the transaction will not increase the company's overall debt-to-equity ratio.

Are the Senior Secured Notes from DTM registered under U.S. securities laws?

No, the Notes have not been registered under the Securities Act and are subject to specific trading restrictions.