DTE Electric, DTE Energy enter into $1.9 billion restated facilities

By Marisa Wong

Madison, Wis., April 21 – DTE Electric Co., DTE Energy Co. and DTE Gas Co. separately entered into restated credit facilities that total $1.9 billion, according to 8-K filings with the Securities and Exchange Commission.

DTE Electric entered into a third amended and restated five-year unsecured revolving credit agreement on April 16 for a $400 million facility.

The restated facility reflects a $100 million increase over the company’s prior credit facility dated April 5, 2013. DTE Electric terminated its second amended and restated facility on April 16.

Interest for the restated facility is equal to Libor plus 69 basis points to 107.5 bps, depending on the company’s ratings.

The facility expires in April 2020 and requires the maintenance of a debt to capitalization ratio of no more than 0.65 to 1.

Wells Fargo Securities, LLC and Bank of Nova Scotia are co-lead arrangers and joint bookrunners for the facility. Barclays Bank plc is the administrative agent, and Citibank, NA, JPMorgan Chase Bank, NA and Wells Fargo Bank, NA are co-syndication agents, with Bank of America, NA as documentation agent.

DTE Electric does not currently have any borrowings under the facility.

DTE Energy facility

According to a separate 8-K filing, on April 16 DTE Energy entered into a third amended and restated five-year unsecured revolving credit agreement for a $1.2 billion facility.

Citigroup Global Markets Inc. and Barclays are the co-lead arrangers and joint bookrunners with Citibank as administrative agent, Barclays, Bank of Nova Scotia and JPMorgan as co-syndication agents and Wells Fargo as documentation agent.

Borrowings will bear interest at Libor plus 90 bps to 147.5 bps, depending on ratings.

The five-year facility expires in April 2020 and requires the maintenance of a debt to capitalization ratio of no more than 0.65 to 1.

Also on April 16, wholly owned subsidiary DTE Gas entered into a third amended and restated five-year unsecured revolving credit agreement for a $300 million facility.

J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith, Inc. are the co-lead arrangers and joint bookrunners with JPMorgan as administrative agent, Barclays, Citibank and Bank of America as co-syndication agents and Bank of Nova Scotia as documentation agent.

Interest is equal to Libor plus 69 bps to 107.5 bps, depending on ratings.

The facility expires in April 2020 and requires the maintenance of a debt to capitalization ratio of no more than 0.65 to 1.

DTE Energy and DTE Gas terminated their respective second amended and restated credit facilities upon closing of the new facilities.

DTE Energy transferred $133,170,001 in letters of credit outstanding under the terminated facilities.

DTE Energy and DTE Gas currently do not have any borrowings under the restated facilities.

The utility is based in Detroit.

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