By Wendy Van Sickle and Cristal Cody
Chicago, March 31 – DT Midstream, Inc. priced $600 million of 4.3% senior secured notes due 2032 (Baa2/BBB-/BBB-), according to a news release on Wednesday and additional details from a source on Thursday.
The notes were talked in the Treasuries plus 225 basis points area but ultimately priced at Treasuries plus 195 bps.
The notes will be 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.
Bookrunners on the notes are BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
Proceeds of the Rule144A and Regulation S notes will be used to partially repay debt under the company’s term loan facility.
The issuer is a Detroit-based midstream company created by DTE Energy’s spinoff of its midstream business in a transaction that is expected to be completed in July.
| Issuer: | DT Midstream Inc.
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| Amount: | $600 million
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| Issue: | Senior secured notes
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| Maturity: | April 15, 2032
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| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC
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| Coupon: | 4.3%
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| Spread: | Treasuries plus 195 bps
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| Announcement date: | March 30
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| Settlement date: | April 11
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| Ratings: | Moody’s: Baa2
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule144A and Regulation S
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| Price talk: | Treasuries plus 225 bps area
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