DT Midstream, Inc. has announced the successful closing of its offering of $650,000,000 of 5.800% senior secured notes due 2034. The company 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 in the 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 notes were issued by DT Midstream, guaranteed by certain of its 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 and existing senior secured notes.
DT Midstream is an owner, operator, and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment, and surface facilities. The Detroit-based company offers natural gas transportation, storage, and gathering services across the southern, northeastern, and midwestern United States and Canada.
The company has stated that the notes were sold in a private placement to qualified institutional buyers and non-U.S. persons outside the United States, pursuant to Rule 144A under the Securities Act of 1933 and Regulation S under the Securities Act. The notes have not been 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.
DT Midstream has also mentioned its transition towards net zero greenhouse gas emissions by 2050, including a goal of achieving 30% of its carbon emissions reduction by 2030. As a result of these announcements, the company's shares have moved -1.3% on the market, and are now trading at a price of $102.93. If you want to know more, read the company's complete 8-K report here.
